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.