Huge tax bill for homeowners who receive BofA settlement?

Instead, some taxpayers might end up owing a sizable tax bill that they. states the majority of families who receive an earned income tax. have three options: enrolling in a payment plan, settling the debt for. After convenience fees and interest, putting a tax bill on plastic adds up to a much larger cost.

Homeowners File Class Action Lawsuit Against Bank Of America For Allegedly Failing To Modify Troubled Mortgages A class action lawsuit was filed against Bank of America in U.S. District Court, Western District of Washington (Seattle), No. 10-00488, on behalf of homeowners alleging that Bank of America reneged on a promise to modify troubled mortgages as [.]

When it can be put against your tax bill.. extending cheaper loans or forgiving failed loans held by struggling homeowners-up to 35 cents will find its. Big banks such as Bank of America and JPMorgan Chase will receive deductions against the corporate tax that will amount to between half and nearly.

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Bank of America and the Department of Justice are near a 16 to 17 billion dollar settlement, the largest agreement between the government and a single company.

NEW YORK (CNNMoney) — The billion foreclosure settlement has finally been. the banks will reduce the principal on loans held by underwater homeowners, Another $1 billion will be paid directly by Bank of America to the Federal. That's because the Mortgage Debt Relief Act of 2007 allows.

BofA Beats Earnings on Huge Adjustment, $650M AIG Settlement.. The trend of industry frontrunners beating or meeting earnings estimates has been maintained by Bank of America. (after tax) in.

Too Big to Tax: Settlements Are Tax Write-Offs for Banks. But here’s the twist. It turns out that banks are also too big to tax: Windfall tax deductions set against the civil settlements imposed by the Justice Department total more than $44 billion, according to Newsweek estimates.

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About $7 billion in the settlement will go to consumers "harmed by the financial crisis precipitated by the unlawful conduct of Bank of America, Merrill Lynch and Countrywide," according to the Department of Justice. The relief will be delivered as principal reductions and loan modifications for homeowners who are underwater on their mortgages.

If you get stuck paying out huge amounts to anyone, you want to ease the burden. Not everyone is pleased that BofA gets to pass on $4 billion to. The proposed Truth in Settlements Act (S. 1898 – fact sheet) would require.