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Internal Revenue Service
Will Congress renew tax relief for homeowners' debt forgiveness?
Will Congress renew tax relief for homeowners' debt forgiveness?

Congress is back from its summer vacation, so the burning financial question on thousands of homeowners' minds right now is this: Are you guys finally going to help out consumers who are underwater on their mortgages, many of whom face crushing federal tax bills if they accept — or have already accepted — principal reductions by their lenders? This question is especially sensitive in the wake of the $16.65-billion toxic loans settlement reached last month by Bank of America and the Justice Department. Roughly $7 billion of the deal is earmarked for direct borrower relief, and a large chunk of that is expected to involve principal write-downs for underwater owners....

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