[Magayon]

Good day, Everyone!

Two days ago, my husband received a CP501 notice from the IRS indicating that hubby has some unpaid taxes due to a discharge of Indebtedness in 2008 that hubby didn’t report as a taxable income(because he didn’t know that he had to report it plus no form 1099c was forwarded to him from the bank). Now, I research about it and found out that the amout discharged can be claimed by him as an exclusion because we were insolvent then. We tried to fill out form 982, checked Part I 1b and filled the amount on Line 2 and PartII 10a. Now our main concern is, we tried our best to recall the the amount he owned and owed then to determine his insolvency status(thru the insolvency worksheet). But, since we only got the notice now, we are having hard time determining the EXACT figures, we were only able to come up with ESTIMATES of the FMV of the assets he owned and liabilities he owed. We called up IRS and asked about our concern about supporting documentation of the figure we put in the insolvency worksheet and they told us that it has to be the exact amount and the value of assets we owned, like for cars value on kbb maybe used, etc… Now, my hubby is apprehensive and actually wanted to just write a check to the IRS to just get this over with. I am a little hopefull that somehow he could still use the exclusion from gross income in order for it to be treated as a nontaxable income. My only concern is providing the supporting documentation on the amounts we came up with at the insolvency worksheet…

Would it be a good idea to just go for it and just use estimates, or should I just let my husband pay for it?

Any input would be greatly appreciated! thanks in advance..

FAR: 7/3(87)
BEC: 8/31(75)
AUD: 11/15(81)
REG: 8/31(83)
I'M DONE!!!!!