dal12939 Posted April 13, 2005 Report Share Posted April 13, 2005 What documents should be submitted with my tax return to support my claim of insolvency? I've looked at Form 982 but it seems to apply to a corporation and not an individual. I've prepared a statement showing my assets versus debt and it clearly supports my claim. I also have a worksheet prepared by Take Charge America which concluded that I did not have the necessary financial resources to manage all of my regularly scheduled living expenses and meet all of my contractual debt service obligations from my take-home pay. Also, I borrowed from my 401K to pay the settlements. I'm assuming I should I include those funds among my assets? Thank you! Link to comment Share on other sites More sharing options...
blackgossamer Posted April 13, 2005 Report Share Posted April 13, 2005 It depends on why you need to prove this. There is a form 433-f called Colection Information Statement. It's used to determine how much they can collect from you for tax purposes or for an offer in compromise. Link to comment Share on other sites More sharing options...
dal12939 Posted April 13, 2005 Author Report Share Posted April 13, 2005 It was my understanding that I needed to attach to my tax return documentation of my insolvency which includes a list of assets and liabilities immediately prior to the date of discharge. I was told I needed to file Form 982 as well. Thanks for your help. Link to comment Share on other sites More sharing options...
LadynRed Posted April 13, 2005 Report Share Posted April 13, 2005 You have the correct form, 982. Did you d/l the instructions for Form 982 ?? Link to comment Share on other sites More sharing options...
dal12939 Posted April 13, 2005 Author Report Share Posted April 13, 2005 Yes, I did. I found them confusing. I guess I'm wondering whether I need to complete Parts II and III. For example, if my discharged indebtedness is $10,000, and none of the items in Part II or III apply to my situation, do I simply leave them blank? I don't file long form. I guess my confusion lies with the Reduction of Tax Attributes (Part II). Part III simply doesn't apply to me. Link to comment Share on other sites More sharing options...
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