j...[at]kamens.brookline.ma.us (Jonathan Kamens) wrote:

- quote -

Now that isn't likely to happen because it cost too many
members of Congress to much in the way of political
contributions. By enacting the proposed legislation,
Congressmen (and women) keep the money flowing in from
bankers and gain a few votes for incumbents besides.

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I just sent this letter to my senators and congressman:

It has come to my attention that Congress is currently
considering the "Mortgage Cancellation Tax Relief Act of
2007" (HR 1876). This bill, if enacted into law, would
amend the Tax Code to exclude debt forgiveness on a primary
residence's mortgage from the definition of "income."

I am writing to urge you to oppose this bill.

The IRS Offer In Compromise program allows taxpayers facing
tax liabilities they cannot pay to negotiate reductions.
Furthermore, the IRS allows long-term payment plans for
taxpayers facing tax liabilities they cannot pay
immediately. These options are reasonable and sufficient
aid for taxpayers facing tax liabilities resulting from
mortgage debt forgiveness.

The Offer In Compromise and payment plan programs have
safeguards to ensure that the taxpayers who take advantage
of them are truly in need. It is far more appropriate to
apply such safeguards on a case-by-case basis than to
forgive tax debt across the board for all taxpayers who
receive mortgage debt forgiveness.

If passed, this bill will introduce yet a loophole into the
Tax Code which will undoubtedly be taken advantage of by
scam artists and fraudsters, placing an increased burden on
the IRS and other Federal agencies to detect, investigate
and prosecute such fraud.

Supporters of this bill claim that mortgage debt forgiveness
is not "real income." In fact, the debt being forgiven is
money that was given to the debtor to help pay for his/her
house, and as such it is in fact real income which should be
taxed. Every dollar of income tax that is forgiven must be
paid by other taxpayers like me, added to the national debt
or taken away from other deserving Federal programs.

Congress's time would be better spent passing legislation
prohibiting predatory lending practices that strand
taxpayers with mortgages they cannot pay.

Sincerely,

Jonathan Kamens

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >