Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

Received a 1099C today mortgage loan balance that was

Customer Question
Received a 1099C today...

Received a 1099C today for a mortgage loan balance that was cancelled debt. Totally confused about how to handle this. I was a cosigner on a mobile home loan for my s-daughter back in 1998. She filed Ch 7 bankruptcy and the debt was discharged in bankruptcy in 2005. The mobile home was returned to the bank. I never saw it, never used it, and never gained any benefit from it..... just grief (!) My social security number wouldnt have been listed as the primary one on the loan, yet here we are 11 years later.... and the debt is being reported to the irs as income to me.

Accountant's Assistant: The Accountant will know how to help. Is there anything else important you think the Accountant should know?

I dont have a copy of the original loan papers to prove I was only a cosigner. The 1099c form indicates that I was the debtor but I wasnt.

Submitted: 2 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 11 minutes by:
2/16/2016
Tax Professional: Lev, Tax Advisor replied 2 years ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,851
Experience: Taxes, Immigration, Labor Relations
Verified

Several issues...

1.

Multiple Debtors. For debts of $10,000 or more incurred after 1994 that involve debtors who are jointly and severally liable for the debt, you must report the entire amount of the canceled debt on each debtor's Form 1099-C. Multiple debtors are jointly and severally liable for a debt if there is no clear and convincing evidence to the contrary. If it can be shown that joint and several liability does not exist, a Form 1099-C is required for each debtor for whom you canceled a debt of $600 or more.

So if the amount discharged is above $10k - the creditor is required to send form 1099C to you.

2.

Regarding timing... If the debt was discharges in 2005 - that means - form 1099C must be issued in 2005 and not many years later.

So it looks as the form is issued incorrectly.

3.

What to do? Contact the sender and point out that the form is issued incorrectly and ask to correct the year issued.

If they refuse - you would need to file a formal complain with the IRS.

But you may not ignore that reporting.

Questions?

Ask Your Own Tax Question
Tax Professional: Lev, Tax Advisor replied 2 years ago

2.

Regarding timing... If the debt was discharges in 2005 - that means - form 1099C must be issued in 2005 and not many years later.

So it looks as the form is issued incorrectly.

3.

What to do? Contact the sender and point out that the form is issued incorrectly and ask to correct the year issued.

If they refuse - you would need to file a formal complain with the IRS.

But you may not ignore that reporting.

Questions?

Ask Your Own Tax Question
Was this answer helpful?
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,851
32,851 Satisfied Customers
Experience: Taxes, Immigration, Labor Relations

Lev is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,495 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,272 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
My question is if we are reporting rental income from
My question is if we are reporting rental income from timeshare rental on our tax return, can we also deduct something that equates to "depreciation" if our timeshare is a right to use timeshare rathe… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,027 satisfied customers
I never received a copy of a 1099c form from my bankruptcy
I never received a copy of a 1099c form from my bankruptcy how do I get it … read more
Lev
Lev
Tax Advisor
32,851 satisfied customers
A ?. My husband gets VA benefits. Is there a form or
Please a ?. My husband gets VA benefits. Is there a form or anything we need to do on income tax. Do we report it or what...Thank you for your help … read more
abci168
abci168
Principal
27 satisfied customers
I have a question about the Form 1099-C. I received a 1099-C
I have a question about the Form 1099-C. I received a 1099-C form from my mortgage company, so I still need to file that even though my mortgage is in an active Chapter 13 bankruptcy? … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Are beneficiaries required to report K-1 credits on the Form
Are beneficiaries required to report K-1 credits on the Form 1040, or is at our discretion? I'm using TAXACT software. The Form 1041 K-1 Final Year Deductions only shows credits on Line 11 A and C. Th… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
If you received a form 1099-c from a rental property where
If you received a form 1099-c from a rental property where is it reported on the 1040. Ex. Property held for over a year. Amount owed per 1099- C is 150,000 fmv 90,000 … read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,027 satisfied customers
Do I report the loss of a stock due to bankruptcy as a sale
Do I report the loss of a stock due to bankruptcy as a sale without proceeds? … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Is it possible to find out how much income was reported to
Is it possible to find out how much income was reported to the IRS for personal and business income … read more
abci168
abci168
Principal
27 satisfied customers
I understand not having to report IRA/Keogh "income" (Form
I understand not having to report IRA/Keogh "income" (Form K-1, line 20) on tax return, BUT, do I show the "original" investment into the MLP as a "contribution" into a Roth on personal tax return? … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
I'm explaining 1099 income reported in a previous year on a
I'm explaining 1099 income reported in a previous year on a 8275 Disclosure Statement - do I need to include a Rule#, and which one should I use?… read more
abci168
abci168
Principal
27 satisfied customers
Should a missed RMD be reported on the tax form of the year
Should a missed RMD be reported on the tax form of the year it should have been taa should a missed RMD be reported in the tax year it should have been taken … read more
Lev
Lev
Tax Advisor
32,851 satisfied customers
On Form 1065, which places do you report interest income.
For Partnership on Form 1065, which places do you report interest income. Such interest earned on a bank account balance by the Partnership.It seems like it needs be put on "Line 7. Other Income (Loss… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,119 satisfied customers
Itreceived Forms 1099C. Do I need to report these as income.
Itreceived Forms 1099C. Do I need to report these as income … read more
abci168
abci168
Principal
27 satisfied customers
TAX: Taxpayer received form 1099-Misc with income reported
TAX: Taxpayer received form 1099-Misc with income reported in box 7 (non-employee compensation) of $4189. The taxpayer performed services as a Substitute Teacher. Is this income reported on SCH C and … read more
Carter McBride
Carter McBride
LLM
1,052 satisfied customers
I received a form 1099-C letter from the Department of
I received a form 1099-C letter from the Department of Education for a cancellation of debt that never occured. I have been ahead on all payments and have found no reason to renegotiate the loan with … read more
abci168
abci168
Principal
27 satisfied customers
What are the forms for reporting Rental Income to the IRS on
What are the forms for reporting Rental Income to the IRS on foreign properties - we collect each month? Is this filed separately from our personal returns?… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,213 satisfied customers
Reporting pension and social security income on both Forms
Reporting pension and social security income on both Forms 1040 and 1041? … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Form 1099-C (2016) Cancellation of Debt Box 7 Fair market
Form 1099-C (2016) Cancellation of Debt Box 7 Fair market value (FMV) of property shows zero. Why zero? The FMV is the most frequent figure on Form 1099-C. The amount in Box 2 is 111,xxx. Box 1 Date o… read more
Lev
Lev
Tax Advisor
32,851 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x