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Perhaps the reason your debt forgiveness is taxable happens because otherwise, might create a giant loophole the actual planet tax code. In theory, your boss could "lend" serious cash every 2 weeks, and the end of 2010 they could forgive it and none of a number taxable. In 2011, the IRS in conjunction with Congress, made their minds up to have a more rigorous disclosure policy on foreign incomes that includes a new FBAR form demands more detailed disclosure info. However, the IRS is yet to secrete this new FBAR variation.
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