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Version vom 14. August 2026, 04:41 Uhr
Leave it to lawyers and the us govenment to be unable to give a straight respond to this main problem! Unfortunately, in order to be eligible to wipe out a tax debt, there are five criteria that must be satisfied.
In the above scenario, just saved $7,500, but the irs considers it income. If for example the amount is over $600, then the creditor is needed to send you' form 1099-C. How could it be income? The government considers "debt forgiveness" as income. Exactly how can you receive out of accelerating your taxable income base by $7,500 this particular settlement?
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