DOC

DAVID N STONEHILL CO, LP A

By Dana Graham,2015-02-09 07:27
16 views 0
DAVID N STONEHILL CO, LP A

     DAVID N. STONEHILL CO., L.P. A .

     ATTORNEY-AT-LAW

     119 EAST COURT STREET #9555

     CINCINNATI, OHIO 45202-1203

     Telephone (513) 632-9555

     Fax (513) 761-7899

    Email stonehill@quickcase.com

    May 13, 2008

Internal Revenue Service

    Holtsville, NY 11742-9012

     Re: Holly R Cockerham (286-60-9845)

     Notice of Deficiency

     Letter Number 3219 (SC/CG) dated February 19, 2008

Dear Sir or Madam:

I am an attorney and represent Holly R. Cockerham in the above-captioned matter.

    Attached hereto is a completed and executed Form 2848 which authorizes me as her

    representative to deal with this matter.

Ms. Cockerham was previously unaware of Form 1099 being sent to her for calendar

    2006. This would have arisen from the foreclosure sale of the real estate that she

    owed at 38 Marvins Lane, Waynesville, OH 45068. She has never received a Form

    1099 for calendar 2006. I would understand that the information on page 5 of the

    Notice of Deficiency sets forth the amounts reported by creditor OCWEN Loan

    Servicing LLC, showing a deficiency of $40,879.

To further complicate this matter, Ms. Cockerham has received from OCWEN a

    Form 1099-a and Form 1099-c for calendar 2007, all arising from the same

    transaction, i.e., the 2006 foreclosure. None is indicated as corrected, so we are

    dealing with 3 Form 1099’s straddling two tax years. I attach copies of the 2007 forms.

Ms. Cockerham indicates that she was unaware of a prior notice of assessment

    arising from calendar 2006 taxes. She had moved, and mail forwarding has expired.

    Perhaps notices had been picked up by her former spouse, who may have not

    forwarded them to Ms. Cockerham. When she first became aware of the problem, she

    thought that it dealt with calendar 2007 taxes which she had just filed. It was only

    after she engaged my services that I determined this to be a 2006 matter, and the

    Form 1099’s for calendar 2007 just added to the confusion.

Internal Revenue Service

May 13, 2008

    Page 2

    After reviewing her situation for 2006, I believe that Ms. Cockerham qualifies for the insolvency exclusion as provided in IRC section 108 to the extent that her liabilities exceed her assets immediately prior to the cancellation of the debt. I had want simply to amend her tax return, but I understand from speaking with a Revenue Agent at your facility that would delay matters. Instead, she indicated that you would work with us directly in resolving this matter.

    I also indicated to Ms. Cockerham that she has the right to petition the Tax Court within the 90 day period, but that would be a drastic and expensive proposition for a situation which calls for an amendment of the tax return to report the income, but then exclude same utilizing the insolvency exclusion. I understand that petitioning the Tax Court would oust your jurisdiction in this matter and further delay its ultimate resolution. I understand that since you will not be able to resolve completely this matter within the 90 day period, there is a “reconsideration” office as part of your unit that would deal with and resolve matters such as this. Accordingly, Ms. Cockerham will forego petitioning the Tax Court and would desire to work with your office to resolve this matter for calendar 2006 and the situation arising from the Form 1099’s issued for calendar 2007.

    Ms. Cockerham finalized the divorce from her husband in calendar 2006 and filed her 2006 federal income tax return as an individual, and not jointly. In invoking the insolvency exclusion, you would look only to her assets and liabilities immediately prior to the cancellation of indebtedness. She filed bankruptcy in 2001 and again in 2003.

    I attach a copy of the confirmation of sale filed August 14, 2006 in the forclosure case pending in Warren County, Ohio. On page 2 it clearly indicates that the property sold for $66,667.00, and the judgment in favor of JP Morgan Chase Bank (the owner of the loan) is $110,000.00. According to Treasury Regulations, the fair market value of the real estate is the sales price of $66,667.00.

    (This section is left blank intentionally.)

Internal Revenue Service

    May 13, 2008

Page 3

    Here is a summary of her assets and liabilities as of August 14, 2006, the day of the confirmation of the foreclosure sale.

Assets:

    38 Marvins Lane, Waynesville, OH $ 66,667.00

    Furniture and personalty $ 2,500.00

    Miami Valley Dance Academy equipment/fixtures $ 1,500.00

    1995 Chevrolet Cavalier $ 1,000.00

    Miami Valley Dance Academy checking account $ 109.00

    Cash $ 40.00

Total Assets: $ 71,816.00

Debts:

    38 Marvins Lane, Waynesville, OH $ 110,000.00

    Capital One credit card 334.00

    Household Bank loan 611.00

Total Debts: $ 110,945.00

Net Worth (Assets Liabilities) ($ 39,129.00)

    The cancellation of debt reported by the creditor is $40,978.00. Ms. Cockerham is insolvent, and the cancellation of debt may be excluded from income to the extent that her liabilities exceed the fair market value of her assets immediately before the discharge. Therefore, you subtract $39,129.00 from $40,978.00 leaving a difference of $1,849.00 to be reported as income.

    I will call your office on Friday, May 16, 2008 to discuss the next steps to resolve this matter on behalf of Ms. Cockerham.

     Sincerely,

     David N. Stonehill

    DNS:tbm

    Enclosures

Internal Revenue Service

    May 13, 2008

    Substitute Page 3 #1

Here is a summary of her assets and liabilities as of August 31, 2006, the last day of

    month after the confirmation of the foreclosure sale. Her real estate would have been

    disposed of and Ms. Cockerham would be left with the deficiency judgment from the

    foreclosure.

Assets:

    38 Marvins Lane, Waynesville, OH $ 66,667.00

    Furniture and personalty $ 2,500.00

    Miami Valley Dance Academy equipment/fixtures $ 1,500.00

    1995 Chevrolet Cavalier $ 1,000.00

    Miami Valley Dance Academy checking account $ 109.00

    Cash $ 40.00

Total Assets: $ 5,149.00

Debts:

    38 Marvins Lane, Waynesville, OH $ 110,000.00

    Deficiency judgment, see Confirmation of Sale $ 51,458.00

    Capital One credit card 334.00

    Household Bank loan 611.00

Total Debts: $ 52,403.00

    Net Worth (Assets Liabilities) ($ 47,254.00)

The cancellation of debt reported by the creditor is $40,978.00. Ms. Cockerham is

    insolvent, and the cancellation of debt may be excluded from income to the extent

    that her liabilities exceed the fair market value of her assets immediately before the

    discharge. Therefore, the entire amount is excuded, and she would report no

    additional income from the cancellation of debt.

I will call your office on Friday, May 16, 2008 to discuss the next steps to resolve this

    matter on behalf of Ms. Cockerham.

     Sincerely,

     David N. Stonehill

    DNS:tbm

    enclosures

    Internal Revenue Service

May 13, 2008

    Substitute Page 3 #2

Here is a summary of her assets and liabilities as of August 30, 2006, after the

    confirmation of the foreclosure sale. Her real estate would have been disposed of and

    Ms. Cockerham would be left with the deficiency judgment from the foreclosure.

Assets:

    38 Marvins Lane, Waynesville, OH $ 66,667.00

    Furniture and personalty $ 2,500.00

    Miami Valley Dance Academy equipment/fixtures $ 1,500.00

    1995 Chevrolet Cavalier $ 1,000.00

    Miami Valley Dance Academy checking account $ 109.00

    Cash $ 40.00

Total Assets: $ 5,149.00

Debts:

    38 Marvins Lane, Waynesville, OH $ 110,000.00

    Deficiency judgment, see Confirmation of Sale $ 51,458.00

    Capital One credit card 334.00

    Household Bank loan 611.00

Total Debts: $ 52,403.00

    Net Worth (Assets Liabilities) ($ 47,254.00)

The cancellation of debt reported by the creditor is $40,978.00, but should be

    $51,458.00. Ms. Cockerham is insolvent, and the cancellation of debt may be

    excluded from income to the extent that her liabilities exceed the fair market value

    of her assets immediately before the discharge. Therefore, you subtract $51,458.00

    from $47,254.00 leaving a difference of $4,204.00 to be reported as income.

I will call your office on Friday, May 16, 2008 to discuss the next steps to resolve this

    matter on behalf of Ms. Cockerham.

     Sincerely,

     David N. Stonehill

    DNS:tbm

    Internal Revenue Service

    May 13, 2008

    Substitute Page 3 #3

Here is a summary of her assets and liabilities as of August 30, 2006, after the

    confirmation of the foreclosure sale. Her real estate would have been disposed of and

    Ms. Cockerham would be left with the deficiency judgment from the foreclosure.

Assets:

    38 Marvins Lane, Waynesville, OH $ 66,667.00

    Furniture and personalty $ 2,500.00

    Miami Valley Dance Academy equipment/fixtures $ 1,500.00

    1995 Chevrolet Cavalier $ 1,000.00

    Miami Valley Dance Academy checking account $ 109.00

    Cash $ 40.00

Total Assets: $ 5,149.00

Debts:

    38 Marvins Lane, Waynesville, OH $ 110,000.00

    Deficiency judgment, see Confirmation of Sale $ 51,458.00

    Capital One credit card 334.00

    Household Bank loan 611.00

Total Debts: $ 52,403.00

Net Worth (Assets Liabilities) ($ 47,254.00)

The cancellation of debt reported by the creditor is $40,978.00, but should be

    $51,458.00. Ms. Cockerham is insolvent, and the cancellation of debt may be

    excluded from income to the extent that her liabilities exceed the fair market value

    of her assets immediately before the discharge. Therefore, you subtract $51,458.00

    from $47,254.00 leaving a difference of $4,204.00 to be reported as income.

I will call your office on Friday, May 16, 2008 to discuss the next steps to resolve this

    matter on behalf of Ms. Cockerham.

     Sincerely,

     David N. Stonehill DNS:tbm

Report this document

For any questions or suggestions please email
cust-service@docsford.com