Form 982

[oceanlovin'ea]

I am working on a return for a person who received 5 1099-C's in 2012. One was dated in October and the rest as of the end of the year. The first one was mortgage and the rest were other forms of debt.

I need to do 2 Form 982's and 2 insolvency worksheets. Well, I guess I really only need 1 insolvency worksheet for the end of the year. But I need to do 2 of Form 982. Can that be done? Or can that be electronically filed, I guess would be the better question?

I KNOW there is a list somewhere that tells us what forms and how many of those forms can be electronically filed. I have spend 1 1/2 hours looking for it on IRS website and still haven't found it. (Well, take out 15 minutes while I found Jeanne Robertson's youtube video. See post "Little Bit of Fun").

Thanks.

Linda, EA

[David1980]

I think this is what you're looking for on the IRS website: http://www.irs.gov/Tax-Professionals...-for-MeF-Forms

[appelman]

Are you sure you need 2 982's?

I am working on a return for a person who received 5 1099-C's in 2012. One was dated in October and the rest as of the end of the year. The first one was mortgage and the rest were other forms of debt.

I need to do 2 Form 982's and 2 insolvency worksheets. Well, I guess I really only need 1 insolvency worksheet for the end of the year. But I need to do 2 of Form 982. Can that be done? Or can that be electronically filed, I guess would be the better question?

I KNOW there is a list somewhere that tells us what forms and how many of those forms can be electronically filed. I have spend 1 1/2 hours looking for it on IRS website and still haven't found it. (Well, take out 15 minutes while I found Jeanne Robertson's youtube video. See post "Little Bit of Fun").

Thanks.

Linda, EA

I would have thought that one would do.

[oceanlovin'ea]

different reasons for not being taxable

I have to mark one for October and show that the cancellation of debt was for the mortgage. The second one would be for December 30 and it would be for the other 1099-C's which were credit cards, etc and they are not taxable because he was insolvent.

So I thought I had to do two.

Linda, EA

[David1980]

You can have multiple reasons on a single 982. Example 3 in publication 4681 uses both insolvency and principal residence on the same 982. (In that example, the balance on loan exceeded the $2 million limit for principal residence thus the extra used insolvency.)

[oceanlovin'ea]

Thanks

Thanks. I'll look up that publication and look at the examples. I didn't do that.

Linda, EA

[S T]

Linda, I am also working on a Form 982 insolvency, fortunately for me I do not have the mortgage relief, only Insolvency for CC debt.

My understanding is you can combine on one 982, as that is all your tax software (correction ) efile will more than likely transmit/support, and then submit along with PDF copy of the worksheets that would be independent statements. (correction/addition ) if you choose to do so for the additional PDF worksheet - not a requirement.

In any event, from a prior post in the last few weeks, appears IRS could request worksheets/substantiation at a later point in time.

Otherwise paperfile, with your 982 forms and worksheets, but more than likely IRS won't read those either, and still a notice 18 months later.

I am having the issues with the reduction in attributes on 982 line 10a, when it is only personal property - no Home, etc, and then I have a NOL.

These rules are so complicated on reporting

Sandy

[appelman]

Worksheets not required.

They're for you to keep in case requested.

Linda, I am also working on a Form 982 insolvency, fortunately for me I do not have the mortgage relief, only Insolvency for CC debt.

My understanding is you can combine on one 982, as that is all your taxware efile will more than likely transmit/support, and then submit along with PDF copy of the worksheets that would be independent statements.

In any event, from a prior post in the last few weeks, appears IRS could request worksheets/substantiation at a later point in time.

Otherwise paperfile, with your 982 forms and worksheets, but more than likely IRS won't read those either, and still a notice 18 months later.

I am having the issues with the reduction in attributes on 982 line 10a, when it is only personal property - no Home, etc, and then I have a NOL.

These rules are so complicated on reporting

Sandy

[S T]

I know Appleman, from a few prior board discussions, some of us include statements and some exclude statements

Not necessarily a requirement - I just choose to do so. - so I corrected my post

Sandy

[oceanlovin'ea]

TaxslayerPro actually has an insolvency worksheet as the second page of Form 982. So the worksheet goes with the return. I also put a statement with the return explaining the form.

Hope it all goes through without a hitch. Guess we will have to wait and see.

Linda, EA

[David1980]

TaxslayerPro actually has an insolvency worksheet as the second page of Form 982. So the worksheet goes with the return.

I'd question that assumption. The worksheet may be just a worksheet to calculate insolvency/for your records that doesn't get transmitted electronically. I like that kind of feature though, as it makes it easier to maintain my records if the IRS later asks for the insolvency calculation.

[oceanlovin'ea]

Hmmmmm

I'll call Taxslayer and ask them. It is considered page 2 of the 982. It isn't listed as a worksheet. That is why I thought that. But will check it out for sure.

Linda, EA