The IRS said Monday it has added a new section to its website to answer tax questions for those losing their homes to foreclosures.
The new section on http://www.IRS.gov includes a worksheet to help homeowners determine whether they are eligible for any foreclosure-related tax relief.
For those who find they owe additional tax, the section includes a form for requesting a payment agreement with the IRS.
The tax agency noted that if the debt wiped out through foreclosure exceeds the value of the property, the difference is normally taxable income. But a special rule also allows insolvent borrowers to offset that income to the extent their liabilities exceed their assets.