WHY ARE WE CHARGING $350 AS AN A

FORM 982 (FORECLOSURES, CERTAIN LOAN MODIFICATIONS, CANCELLED CONSUMER DEBT AND SHORT SALES)

THIS EXTRA FEE DOES NOT APPLY IF THE DEBT WAS DISCHARGED IN BANKRUPTCY OR IS NON-RECOURSE (THIS INCLUDES DEBT USED TO BUY OR BUILD YOUR PRIMARY RESIDENCE IN CALIFORNIA WHICH WAS NEVER REFINANCED)

The area of tax liability relating to cancellation of debt relief is not for the faint of heart and not for the amateur. An accurate analysis requires careful consideration of many factors involving both state and federal law. If the truth be told, most "tax people" are not even qualified to act in this area because it involves interpretation of state real estate law and state deed of trust law. Tax preparers, CPA's Enrolled Agents and others who give tax advice have no business delving into non-tax law areas, but they do anyway.

The decision on how to properly treat your potential income from a foreclosure, cancelled consumer debt, short sale or loan modification can involve tens of thousands, if not hundreds of thousands of dollars of potential additional income. We have the tools and the expertise to do a thorough analysis and reduce or eliminate this potential liability. In addition, we will tell you exactly what documents to maintain to prove your position to the Internal Revenue Service if a challenge arises. Finally, we provide free legal services up to and including an administrative appeal.

The average taxpayer will complete a Form 982 for someone who has realized cancellation of debt income, and then leave it at that. This is often viewed as a "magic" form that makes this potential liability just go away. And this is absolutely true, unless you draw the attention of the IRS. At that point you had better hope you have first, taken the correct legal position regarding this income and second, maintained the documents to prove this position.

Paying us this nominal additional fee is a relatively inexpensive way to ensure this issue is taken seriously. We will take on the responsibility for determining what your position should be and the responsibility for legally defending this position. You however, must collect and preserve the documents necessary for us to do this.

We want you to be aware of this charge so you have the opportunity to have your taxes done with a non-attorney. As they do not have the scope of duty to the client an attorney has, they can afford to be "quick and dirty" with this issue. And that means they should be far less expensive than our firm. We can only be thorough and that means we will spend far more time completing a tax return involving this issue than under ordinary circumstances. If you choose to save this money by going elsewhere we would welcome you back in the future.