Re: Just from my own experience, the best kind of opinion to give.

Posted by LadynRed (199.91.33.254) on July 02, 2002 at 14:26:14:

In Reply to: Re: Just from my own experience, the best kind of opinion to give. posted by celce on July 01, 2002 at 23:39:53:

WhyChat's point was that to say 'don't worry about it' when the IRS is concerned is just plain stupid. You can't ever get away from a debt owed to the IRS, so I DO worry about whether or not any of these 1099-C's will come my way. I can't afford to pay taxes on thousands of dollars of 'cancelled debt income' (which I find ludicrous to start with !). If I end up having a tax debt, as far as I'm concerned, I'm in deeper doo-doo than ever before !

MY point is.. if the IRS can get involved, you need to worry about it, or at least be extremely aware of what the laws and possibilities are and how it will affect you at tax time and beyond. MOST people haven't a clue that 'cancellation of debt' income even exists !!!! Its a huge 'gotcha' that nobody ever bothers to tell you about.

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