1099-c error?

I received a 1099c from a credit card that was discharged in bankruptcy in 8/2003...the date debt cancelled on the 1099c states 12/31/2005??? Should I contact the IRS with documentation of the dischrge and the companys listing when I filed?? Thanks for any advice you may have..I am in Virginia

shawat said:

I received a 1099c from a credit card that was discharged in bankruptcy in 8/2003...the date debt cancelled on the 1099c states 12/31/2005??? Should I contact the IRS with documentation of the dischrge and the companys listing when I filed?? Thanks for any advice you may have..I am in Virginia

Click to expand...

My honest advice would be to ignore the 1099-C at this point.

Wait to see if the IRS raises any issues....deal with it then.

Or you could list it on your return and explain that it was from the Bankruptcy, and file the form that shows insolvency at the time.

I wouldn't ignore it, it will turn up in the IRS matching program as not showing on your return.

Snipes

Its honestly been my experience that its better to not include the 1099 C on the tax return. First, despite the fact that it was issued in 2005 if it belongs on any return, it belongs on the 2003 return, because that is when the bankruptcy was discharged. It was improper for the credit card company to have issued it for 2005. Second, the proper treatment of a 1099 C is to not include it on a tax return if the income is not taxable. Third, its less costly to produce the bankruptcy records should the IRS question the 1099 C than it is to amend the 2003 return to reflect the 1099 C. Fourth, In all my years of practice I have rarely seen the IRS question a 1099 C.

Thanks

Thank you so much for the advice as that bankruptcy was one of the hardest decisions I had to make and to be blindsided like this was a bit upsetting... I do appreciate the time...

Well that is good to know. The banks are issuing more and more of those stupid things every year.

Snipes