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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29535
Experience:  Taxes, Immigration, Labor Relations
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I reeived a Form 1099C, cancellation of debt. I need to know

Customer Question

I reeived a Form 1099C, cancellation of debt. I need to know if it must be added it to my income. I also need to know if the money has already been taxed since the overpayment has been over a period of 21 years
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

Please verify on form 1099C box 5 - if your were personally liable?
Then - is that debt related to your personal home?
And finally please clarify hwy do you thin that is "over-payment"

Customer: replied 1 year ago.
Box 5 is checked. The form indicates that it was an overpayment. It is not related to my home.
Expert:  Lev replied 1 year ago.

If that is over-payment refunded to you - means you are paid back amounts which you previously paid to them - we should NOT have form 1099C.
I suggest immediately contact the sender and request corrections.

Be sure to keep track of all your communications - because if they refuse - you will need to provide adequate explanation to the IRS and will need to tell what steps you make to resolve the issue.

When you communicate I suggest to do both - send them a letter (via certified mail) and contact over the phone.


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