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1099 form question

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sbever

Member
State: IN


I heard mention of some sort of 1099 form that needs to be filed if a person files bankruptcy. Can someone please explain if this is something mandatory and how a person would obtain this form?

Thanks for any help.
 


abezon

Senior Member
A person who files BK might receive a 1099-C, & would have to file a form to show that they were insolvent when the debt was cancelled to avoid paying income taxes on it.
 

sbever

Member
What form would need to be filed for insolvency? Is there a publication I might be able to read to understand better?

Thanks so much for your help.
 

LdiJ

Senior Member
sbever said:
What form would need to be filed for insolvency? Is there a publication I might be able to read to understand better?

Thanks so much for your help.
Insolvency isn't the only issue. If the debt was in regards to a specific asset "basis" is also a significant factor.

In any case...you don't "get" the 1099 C, you are sent the 1099 C by a creditor. If you get one, consult with a professional tax preparer, preferibly an enrolled agent.
 

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