To prove insolvency to the IRS, an insolvency worksheet calculates the amount of cancelled debt income that can be excluded, and Form 982 is used to report it to the IRS. The worksheet does not have to accompany the tax return, according to the IRS.
A taxpayer doesn't have to include cancelled debt in income to the extent that he was insolvent before the cancellation. The insolvency worksheet, available in IRS Publication 4681, is used to list all assets and liabilities immediately before the cancellation of debt. The taxpayer needs records of debt balances and asset values. "It's not impossible, but the more time that passes, it's hard to go back and really prove that you were insolvent," notes creditcard.com. The worksheet and supporting documents should be kept in case the IRS asks to see them.Learn More
As of 2014, the sales tax rate in Boston, Massachusetts is 6.25 percent, according to the Tax Foundation.The City of Boston does not charge consumers an additional sales tax percentage on top of the state rate.Full Answer >
The 1765 Stamp Act imposed a tax on every printed piece of paper the American colonists used for business transactions or legal documents, including newspapers, pamphlets, bills, licenses and even playing cards, according to The History Place. The Colonial Williamsburg Foundation explains that the act imposed the first tax on the colonies explicitly used to raise money for the British crown, thereby setting a dangerous and unwelcome precedent.Full Answer >
Gift tax is calculated by taking the face value of a taxable gift, less the annual exclusion and lifetime exemption amounts, multiplied by the applicable gift tax rate. Any gift received over the annual exclusion amount requires a taxpayer to file a Form 709.Full Answer >
The address used to send the IRS Form 940 entirely depends on where the employer is located and whether a payment is included with the return, and the IRS lists the various addresses on its website. If the employer isn't including a payment, the form may be sent to IRS offices in Cincinnati, Ohio or Ogden, Utah. If a payment will be included, the employer will either send the form and payment to an IRS office in Cincinnati, Ohio or Hartford, Connecticut.Full Answer >