Discussion:1099-C issued for prior year debt

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Discussion Forum Index --> Basic Tax Questions --> 1099-C issued for prior year debt

Discussion Forum Index --> Tax Questions --> 1099-C issued for prior year debt

Taxjoe (talk|edits) said:

26 April 2010

2009 1099-C was issued for debt cancelled in 2008 -- i.e. the date of cancellation, box 1, is 2008, but the form itself was for 2009. Should I claim it for 2008 or 2009? I suspect, for 2008, but I am not sure. (I tried to search for relevant posts here, but could not find any with this specific issue.)

Thanks a bunch!

DaveFogel (talk|edits) said:

26 April 2010
Lenders are making a lot of errors on these forms, so you need to ascertain the correct facts and report the transactions on the returns accordingly.

If the debt was canceled in 2008, then the transaction should be reported on the 2008 return. Suggest you attach a statement to the 2009 return acknowledging the 2009 Form 1099-C and stating that the transaction was reported on the 2008 return because 2008 was the year in which the transaction actually occurred.

Kbairtax (talk|edits) said:

14 July 2010
Karen's related question ended up being reactivated here: Discussion:1099-C issued 4 years after debt discharge.

Jctmstx (talk|edits) said:

14 July 2010
It's not unusual to recieve follow-up computer generated letters. I always get the client in my office and call the IRS! This will usually stop the flow of correspondence in advance.

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