Legal Question in Tax Law in South Carolina

lending fraud and taxes owed

HFC loaned me 110thousand on a 60 thousand mill house and I was making 10.00 an house. I lost the house and now I get a bill from IRS and they say I owe 18,000 for this forgiven debt on this house.what should i do? I sighned a paper a long while back before i underrstood the irs rules ... papers that gave ne athousand and i would not sue household finanace. I am so poor now and scared.


Asked on 9/14/07, 7:10 pm

1 Answer from Attorneys
Ronald Cappuccio Ronald J. Cappuccio, J.D., LL.M.(Tax)

Re: lending fraud and taxes owed

There is no lending fraud. This is called "Cancellation of Indebtedness Income" and is taxable. There are proposals to change this for a primary home. Also, if you have nothing, you may be able to argue the issue with the IRS.

You should hire a tax attorney to fight this.

I hope this helps!

Ron Cappuccio

http://www.taxesq.com

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Answered on 9/14/07, 8:06 pm


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