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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28081
Experience:  Taxes, Immigration, Labor Relations
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We file our 1040 Jointly. We had a credit debt forgiven on

Customer Question

We file our 1040 Jointly. We had a credit debt forgiven on my Credit Card account for $12,200 and received a $12,200 on 1099C. That is correct. The problem is my husband, being a joint filer also received this same amount on his 1099C for $12,200. We cannot get to talk with anyone at the Credit Card company to hear us and tell them to correct it before we send out taxes in April 15th. The IRS will see two 1099C for $12,200 under my husband's SS and another one under my SS. The IRS will assume that we both had $12,200 debt forgiveness..the IRS will never figure out that it is a duplicate amount. What can we do?
Submitted: 6 months ago.
Category: Tax
Expert:  Lev replied 6 months ago.
There are some situations when the same forgiven debt is reported to multiple debtors.Report that amount ONLY one time and attach a note with explanation of facts and reasoning.In most situations the IRS is satisfied with such explanation and you woudl not have any letters from the IRS.
Customer: replied 6 months ago.
Our Accounts said that a 1099c is very easy for the IRS to track and they will not know that the $12,200 is a duplicate. A computer will not read any nite attached to it and it will red flag our Return and probably make for another Audit. We have been audited so many times we just don't want this. How do we get the Credit Card company to help correct this. They will not allow us to talk to the Dispute Droartment.?!?
Customer: replied 6 months ago.
Are you still there?
Expert:  Lev replied 6 months ago.
You may contact the sender asking for correction - that is not an issue.But there are certain rules that allows to issue several 1099C if there are several debtors.I bet that you will spent lots of time and effort and most likely will not be able to convince the credit card company to void one 1099C.The best way to handle such situation - as I suggested to attach a note to your tax return.You may try to communicate with the credit card company in additional to that.
Customer: replied 6 months ago.
That is the same information our Accounts have given. I know they have to report anything over $10,000, and I bet they won't do any corrections. We are out of luck. No one any more does the right thing any more. Now do you collect the $37 and how do I terminate any more charges?
Customer: replied 6 months ago.
You answered as best you could but offered no IRS Forms which we could use.
Expert:  Lev replied 6 months ago.
There is NO specific IRS forms for such situations.All you need to do - just attach a note with explanation that forms 1099C are duplicated.No need to provide any supporting documents as long as the IRS doesn't ask for..
Expert:  Lev replied 6 months ago.
Please be aware that experts do not have access to your account or any personal information.You woudl need to contact the customer service for such issues.Here is contact information you by mistake selected subscription - you may change that - here is information about cancelling your subscription. appreciate if you take a moment to rate the answer.Experts are ONLY credited when answers are rated positively.If you still have any doubts, need clarification - please be sure to ask.I am here to help you with all tax related issues.