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I reeived a Form 1099C, cancellation of debt. I need to know

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if it must be added...
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
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Answered in 2 minutes by:
3/2/2016
Tax Professional: Lev, Tax Advisor replied 1 year ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,160
Experience: Taxes, Immigration, Labor Relations
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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"

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

.

I 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.

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