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Charles Markham
Charles Markham, Enrolled Agent
Category: Tax
Satisfied Customers: 653
Experience:  IRS Enrolled Agent, US Tax Court Practitioner
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how do yu fill out a form 982 for the IRS

Customer Question

how do yu fill out a form 982 for the IRS
Submitted: 4 years ago.
Category: Tax
Expert:  Lev replied 4 years ago.
Hi and welcome to Just Answer!
You will use the form 982 if you have a debt forgiven and are eligible to exclude all or part of that debt from taxable income.

If you negotiate with the creditor and all or part of the debt is forgiven or the debt would be canceled under bankruptcy protection procedure - you are sent the form 1099-C.

The amount of debt forgiven is reportable on 1099-C - - generally is taxable, unless any exemption apply -- you should file a form 982 -
- to proof your exemption - and might exclude all or part of canceled debt from taxable income.

Filing the form 982 depends on the type of debt and which exemption you are using.

You will find examples in IRS Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments

Let me know if you need any help.
Expert:  Charles Markham replied 4 years ago.

982's are deceptively simple looking forms. Are you filing this with an original return, a late return or in response to an IRS Notice?