This makes me sick. This is just the beginning. If anyone thinks that all of this sub-prime garbage was not planned as a way for the corporate elites and bankers to continue the rape and destruction of the American worker had better wake up fast! Things are going to get much worse!




http://www.federalobserver.com/archive.php?aid=11874


After Foreclosure, a Big Tax Bill From the I.R.S.
By Geraldine Fabrikant

Yuh want me to stick it where?

Two years ago, William Stout lost his home in Allentown, Pa., to foreclosure when he could no longer make the payments on his $106,000 mortgage. Wells Fargo offered the two-bedroom house for sale on the courthouse steps. No bidders came forward. So Wells Fargo bought it for $1, county records show.

Despite the setback, Mr. Stout was relieved that his debt was wiped clean and he could make a new start. He married and moved in with his wife, Denise.

But on July 9, they received a bill from the Internal Revenue Service for $34,603 in back taxes. The letter explained that the debt canceled by Wells Fargo upon foreclosure was subject to income taxes, as well as penalties and late fees. The couple had a month to challenge the charges.

For those who struggle to pay their bills, who watch their housing payments rise out of reach with their adjustable-rate mortgages, who lose a job or who fall victim to illness, losing one’s home can feel like hitting bottom. But one more financial indignity may await as the fallout from the great housing boom ripples across the United States.

“Getting that tax bill,â€