A warning for all those people in a financial hole and considering settling part or all of that debt, your settlement could mean you have to pay more in taxes to uncle sam. A local tax expert: if perhaps a bank has foreclosured on you or you have credit card problems and you got that debt taken care of, you might think you are in the clear for a while. well, when tax season comes up, you want to pay very close attention because you may have a huge problem you didn't even know about. as foreclosures and credit card debt continue to surge... a lot of people are getting their debt forgiven or discharged. and this the IRS's eyes they are getting free money or income and the i.r.s. will tax you on it. it's tax law. ronnie hicks at the tax defense network says a lot of people are coming to them after they received this in the mail, a 1099 c form for discharged debt. so hypothetically you could owe the i.r.s. for that money. 2011-03-03 TDN JAX WJXT IRS 982
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