[Allergic2CPA]

So I received a Notice of Deficiency from the IRS. I anticipate settling the matter outside of court but had some questions.

Is it better to choose a small case over regular case? I understand there are no appeals for small cases but the rules are more relaxed relative to regular cases.

The issue regards the forgiveness of debt, which is generally considered as income by the IRS but I didn’t include it. I will be providing documents to the IRS demonstrating that I was insolvent at the time (more liabilities than assets) in 2011. For liabilities, I’m going to use credit card statements. For assets, my bank statement and Statement of Earnings for my retirement account. However, not sure how to proceed on two items.

How do I locate the retroactive FMV of a used car and time share? The car has more miles now than it used but dont know how many it had at that point in time. I also have a liability on the timeshare so I don’t think I have or had any equity in it but still need to know how to find it’s FMV as I was simply going to use the liability as its FMV.

Thank you in advance for your help.

FAR 46*, 77
AUD 70, 79
BEC 67, 82
REG 75

Texas License July 2013

Used Yaeger lectures based on Wiley textbooks

*Studied less than two weeks, forgot I had purchased NTS.

[LSNYC]

I don't think people here are going to be able to help you on this. I would suggest contacting a lawyer who specializes in this type of matter.

While we study this for the exam it is tricky business giving advise to people without knowing all the facts and having some form of relationship especially over the Internet.

A - 61, 91!!
B - 78!
F - 76!!!
R - 71, 73, 74, 69, 77!!!!

Finally done!

This is my 2nd attempt at the exam, I had two parts passed (failed many) and I stupidly quit, big mistake. Now I'm back and with a vengeance!

[Tncincy]

L/sYNC is right in finding someone with experience before the IRS like an EA. If the cancelled debt for forgiven debt was expressed on a 1099c then the IRS is expecting you to report the cancelled debt as income. You might need proof from bankruptcy to show insolvency as well. The fact that you are filing a tax return says that you are reporting any income for the year. So again, please seek legal advice or an EA. As far as the IRS is concerned, you might not win.

It begins with a 75
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[Author]

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