Guest Client: Danny

Temple guided Danny through fixing issues on his 2022 tax return to address IRS penalties and errors. They corrected problems with Schedule C, removed incorrect income entries, and properly handled the 1099-C cancellation of debt using Form 982 for insolvency. Temple explained how to properly list business expenses and debts, emphasizing the importance of simplicity in tax filings. They discussed how to handle future credit card debt cancellations, with Temple recommending processing them on the 2025 return rather than backdating. The session focused on helping Danny understand the process and prepare to submit a corrected return to resolve the $10,000 penalty and other issues with the revenue agent.