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Interest Received

CLG Professional Services
June 22, 2011
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Most interest that you either receive or is credited to your account and that can be withdrawn without penalty, is taxable income. Examples of taxable interest are interest on bank accounts, money market accounts, certificates of deposit, and deposited insurance dividends. Interest on insurance dividends left on deposit with the Department of Veterans Affairs, however, is not taxable. Interest on Series EE and Series I U.S....

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Form 1099-A (Acquisition or Abandonment of Secured Property) and Form 1099-C (Cancellation of Debt)

CLG Professional Services
June 22, 2011
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If you borrow money from a commercial lender and the lender later cancels or forgives the debt, you may have to include the canceled amount in income for tax purposes, depending on the circumstances. When you borrowed the money you were not required to include the loan proceeds in income because you had an obligation to repay the lender. When that obligation is subsequently forgiven or the property is abandoned or foreclosed, the...

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Dishonored Payments

CLG Professional Services
June 22, 2011
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My Check (Payment) did not Clear. What Now? At times a taxpayer will call the Internal Revenue Service because they received a Letter 608C, entitled, Dishonored Check Penalty Explained, stating that their check or other commercial payment instrument did not clear the bank. The Internal Revenue Service does not submit checks or other commercial payment instruments a second time for payment. The re-submission of a payment would be...

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