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Hi Sandy - Thanks for your information but we must have just ONE 1099-C listing both names on one forms. The mortgage company has stated that the TOTAL amount of cancelled debt is $32,205. Herein lies our very large problem: The mortgage company states that they will NOT resend a corrected 1099-C with both of our names and the correct amount of cancelled debt of $32,205.
If they insist on keeping the 1099-Cs as is, then they need to reissue two 1099-C's with an amount on each 1099-C of $16,103 and not $32,205 ... How can we make the mortgage company "do the right thing" and right this wrong. We've been told this is no longer an IRS problem but a legal problem whereby an attorney will need to use other means of persuading the mortgage company to resubmit the corrected 1099-C.
Attach a copy of each 1099C to your return and a statement explaining that the total cancelled debt is 32,205 for the transaction instead of 64,410. Also state that the company refused to correct the document after your request.
File your return as it should be done using the correct amount instead of the doubled figure.
Let IRS correct the company.