When We Issue a Tax Opinion

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Given the proper set of facts, we may be willing to issue a tax opinion stating that the forgiveness of debt reported on the 1099 is NOT in fact income and should be excluded by the taxpayer. Certain transactions may be viewed as the settlement of a bona fide dispute or a bargained-for exchange and this should not properly be considered foregiveness of debt.  Of course, it is in the lender’s interest to issue the 1099 to enable it to claim a tax deduction.

If you have received a Form 1099 from your lender, even if you have already filed a return, please contact us (your return may be amended). We are happy to review the facts of your case and the likelihood of our being able to assist you in issuing a favorable tax opinion.