Pay any amount owed to the IRS by 4/15 to avoid penalties.

How does one get hit by taxes by IRS on this?

I got $30,000 in Roth IRS.

The IRS takes a dim view of that and views it as  a way somehow to get to the profit while avoiding tax . 

I have assigned a contract in Maryland to an end buyer for a property owned by a foreign family that needs to get an ITIN and FIRPTA from the IRS.

Ok, I have read all the IRS publications and seen many forum answers on this basic subject and I THINK I now have an answer from IRS publication 523 but would like confirmation if possible as I think I have a quite rare scenario.

Another thing to do is read the business expense publication from the IRS. 

I THINK the owner is writing off the bad debt on their taxes somehow and that’s why it’s on their profit loss statement  I am still a bit unclear on this though, because in the research I’ve done, it still seems odd that people are reporting bad debts because per the IRS “Generally, to deduct a bad debt, you must have previously included the amount in your income or loaned out your cash.

Along with IRS problems 1099C recapture loss's at highest tax rates.. its a double whammy.. you probably dont have that in CA. 

IRS has accepted no less than 6 different methods for determining land vs. building value.