Debt & Financial Issues Tax Guide

Tax guidance for debt cancellation, insolvency, consumer credit, and financial hardship situations.

Debt & Financial Issues Tax Resources

Understand the tax implications of debt cancellation, insolvency, and financial hardship situations.

Debt Cancellation

Cancellation of Debt & Insolvency Exclusion

2025

Cancellation of debt (COD) income, Form 1099-C, insolvency exclusion, bankruptcy exclusion, qualified principal residence exclusion, Form 982, and basis reduction rules.

Key Points:

  • Canceled debt is generally taxable income
  • Insolvency exclusion: Exclude COD income to the extent insolvent
  • Bankruptcy: COD income excluded if debt discharged in bankruptcy
  • Form 982 required to claim exclusions

Consumer Credit

Consumer Credit & Financial Planning

2025

Credit counseling, identity theft impact on credit, debt management strategies, and financial planning resources.

Payment Issues

IRS Payment Plans & Options

2025

What to do if you can't pay your taxes: installment agreements, offer in compromise, currently not collectible status, and avoiding collection actions.


Financial Difficulty

Facing financial challenges with tax implications? Contact us for guidance through your situation.

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