Los Angeles California Tax Attorney Blog

A common IRS tax problem or IRS tax controversy concerns raised by our Los Angeles, Riverside and Orange County clients to our tax attorneys centers around the tax problem which arises through foreclosure and short sales of real estate.

We are not talking about real estate taxes but IRS tax problems which arise as our housing markets crash in Los Angeles, Orange and Riverside areas.

IRS tax law requires all lenders to report to the Internal Revenue Service when they obtain partial or full satisfaction of a debt which is secured by interest in real estate. The lender is also required to report to the IRS when the borrower abandons property that is security for the debt.