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Tax Planning/Tax Court Petition

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Question
IRS asserts increase 2010 tax resulting from canceled debt of $1713. Cancellation of Debt Worksheet was provided in 2010 1040 tax return to support claim of insolvency.

In Petition, I plan to state that IRS errored in rejecting my claim of insolvency, then be prepared to submit a more detailed insolvency worksheet at time of trial. Does this approach seem appropriate? Any suggestions,recommendations,input would be sincerely appreciated.

I am a Social Security retirement recipient, but had some employment. The debt cancellation resulted in a tax increase of 595.00, which includes interest and fines. This is a significant burden to me. Thank you for your attention to this

Answer
Jeffry,
I assume you have tried to get this done over the phone? If you haven't I would call 800 829-7650 and talk with one of the representatives. Do you know the details of why they rejected your claim? In any case, I would see if you could get this resolved at one of the local offices or over the phone. If you can't afford to pay your balance due you should be able to revisit the whole financial review over the phone. I'm not sure how many people win against the IRS in court, but I wouldn't bet on the odds being in your favor.

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Richard S

Expertise

My expertise is in collecting past due taxes and tax returns. While at the IRS I worked on wage and bank levies, liens, Offer in Compromise, late filing and payment agreements every day. I spoke with over 20,000 people concerning their issues while I worked there (just retired).

Experience

Ten years working for the the IRS in Collections and tax return review. Worked with over 20,000 people on their IRS issues. Explained their options and usually worked out a solution while they were on the phone.

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Masters Degree from Iowa State in Ames.

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