Any help here?

[cientax]

Have a new client that sold their home in 2005 for $10,000 to someone that was going to help them with their debt problems and supposedly assume the loan on the mortgage but in looking at the HUD 1 form, the $10,000 went to the mortgage company and no assumption of the loan. However, the amount of the discharged debt is still the same as the balance when the home was sold. They now have received a CP2000 showing cancellation of debt. They did not know that the debt was cancelled since they moved and never received the 1099C. The CP2000 is dated Feb 02, 2007.

Q: Can the form 982 still be filed with an amended return or is it too late?

[joanmcq]

Looks like they fell for a scam. However, with the CP200 being that old, its likely an NOD was issued and the 90 days passed and the tax assessed at this point, which leaves them SOL.

[cientax]

Looks like they fell for a scam. However, with the CP200 being that old, its likely an NOD was issued and the 90 days passed and the tax assessed at this point, which leaves them SOL.

My concern was not the amended return but the timely filing of the form 982. We do amended returns very often after the 90 days has passed on a NOD issued, closed and tax assessed and the amended returns are always accepted if filed timely and correctly with sufficient documentation.

But after reading the instructions for form 982 more in depth, I found my answer, it sounds like they are SOL even if the Notice Of Deficiency was issued and tax assessed.