irs
Date: Mon, 06/13/2011 - 11:06
I have a bill from the irs stating i should have recieved a 1099-c form regardig 3,391. And there for i owe the irs 768.00. How does this work?
Did you settle a debt where that amount of money was written off
Did you settle a debt where that amount of money was written off? When you settle a debt for less than the actual amount owed, any amount over $600 that is written off is considered "income" for you and you should receive a 1099C form from the creditor. Even if you don't receive the form, you're still responsible for paying the taxes on the "income."
If you can prove insolvency at the time of the write-off, you can get out of paying that tax.
form 982
go to the irs website and print up form 982.fill it out and send it along with the bill.982 is the insolvency worksheet btw.
