Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

My accountant did not include a cancellation of Debit on my…

Customer Question
My accountant did not...

My accountant did not include a cancellation of Debit on my 2015 tax return. Do I need to fle a 1040x

Accountant's Assistant: The Expert will know how to help. Please tell me more, so we can help you best.

My son attends Buffalo State College. They are asking for an amended return for 2015

Submitted: 8 months ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 2 minutes by:
9/18/2017
Tax Professional: Barbara, Enrolled Agent replied 8 months ago
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 6,005
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
Verified

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

If your accountant did not include Form 1099-C (cancellation of debt) on your 2015 tax return, you will need to amend your return (Form 1040X) to include the cancellation of debt and submit to the IRS.

What was the cancellation of debt for? Mortgage? Credit card?

Ask Your Own Tax Question
Customer reply replied 8 months ago
Credit card
Tax Professional: Barbara, Enrolled Agent replied 8 months ago

When you receive a cancellation of debt for a credit card, the IRS considers that amount to be INCOME to you unless you were insolvent at the time.

Ask Your Own Tax Question
Tax Professional: Barbara, Enrolled Agent replied 8 months ago

That is why the IRS has contacted you. Amend your return to include the 1099-C income and mail it to the IRS.

If you were insolvent, you will include Form 982 to EXCLUDE the income.

Ask Your Own Tax Question
Customer reply replied 8 months ago
Is this $52 in addition to the $41
Tax Professional: Barbara, Enrolled Agent replied 8 months ago

Don't worry about the $52. That is a system generated telephone offer. We can continue here.

Ask Your Own Tax Question
Tax Professional: Barbara, Enrolled Agent replied 8 months ago

There is no reason for the additional fee to you.

Ask Your Own Tax Question
Customer reply replied 8 months ago
Insolvent meaning I received a refund? The IRS is aware of the income since it is on the Wage and Income statement I requested
Customer reply replied 8 months ago
Are you here?
Tax Professional: Barbara, Enrolled Agent replied 8 months ago

Insolvent means you have more in liabilities than in assets.

Your Wage and Income Statement from the IRS shows the 1099-C because they receives copies.

Ask Your Own Tax Question
Tax Professional: Barbara, Enrolled Agent replied 8 months ago

The accountant who prepared your 2015 tax return should prepare the amendment to include the 1099-C FOR FREE if it was his mistake.

Ask Your Own Tax Question
Customer reply replied 8 months ago
it was. He made many mistakes. I am no longer using him
Customer reply replied 8 months ago
Why a 1099c and not a 1040x?
Tax Professional: Barbara, Enrolled Agent replied 8 months ago

The 1040X is the form used to amend your tax return.

Form 1099-C is the form the credit card company used to report the cancellation of debt amount. The 1099-C amount gets included on the 1040X.

Ask Your Own Tax Question
Customer reply replied 8 months ago
I understand that. Why didn't the IRS ask for an amended return?
Customer reply replied 8 months ago
I do not have a copy of the 1099-c from the credit card company
Tax Professional: Barbara, Enrolled Agent replied 8 months ago

In your original question, you said that the IRS did ask for an amended return.

Ask Your Own Tax Question
Tax Professional: Barbara, Enrolled Agent replied 8 months ago

The 1099-C amount is listed on the transcript you obtained from the IRS.

Ask Your Own Tax Question
Tax Professional: Barbara, Enrolled Agent replied 8 months ago

Does the letter you received from the IRS say that you can agree with them or does it ask that you file an amended return?

Ask Your Own Tax Question
Customer reply replied 8 months ago
My sons college did after I sent them the wag and income statement because my accountant at the time did not include W2 forms
Customer reply replied 8 months ago
No letter from the IRS
Customer reply replied 8 months ago
It is for a $1786.00 cancellation of Debt
Tax Professional: Barbara, Enrolled Agent replied 8 months ago

If your original return was incomplete, that is why the college is asking for an amended return.

File an amended return to include the $1786 so you can provide a copy to your son's college.

Ask Your Own Tax Question
Customer reply replied 8 months ago
The IRS changed my refund amount from what the accountant put on my tax return
Tax Professional: Barbara, Enrolled Agent replied 8 months ago

I understand. The IRS probably added the $1786 to your income and reduced your refund accordingly.

Ask Your Own Tax Question
Customer reply replied 8 months ago
I do not know how to fill out the parts after income and deductions on the form
Tax Professional: Barbara, Enrolled Agent replied 8 months ago

My best advice would be to have a tax professional prepare the amendment for you because unless you are familiar with it, it can be very confusing.

Ask Your Own Tax Question
Customer reply replied 8 months ago
Can I find the information on the tax transcript from the IRS?
Tax Professional: Barbara, Enrolled Agent replied 8 months ago

You need a copy of the 2015 tax return you originally filed, and then you can prepare the amendment.

Ask Your Own Tax Question
Customer reply replied 8 months ago
I have that but the IRS made changes
Tax Professional: Barbara, Enrolled Agent replied 8 months ago

You will have to amend your return to include the changes the IRS made. That is why I suggested you go to a local tax professional who can assist you with the amendment.

Ask Your Own Tax Question
Customer reply replied 8 months ago
The account transcript shows the corrections the IRS made. They did not ask for an amended return
Customer reply replied 8 months ago
This just cost me $41 for you to tell me to go to an accountant???
Tax Professional: Barbara, Enrolled Agent replied 8 months ago

I understand that, but your son's college wants the amendment. You have to file it with the IRS so you can give the school the amendment.

Ask Your Own Tax Question
Tax Professional: Barbara, Enrolled Agent replied 8 months ago

I have been answering all of your questions. My suggestion to go to an accountant is to make sure the amendment is done correctly.

Ask Your Own Tax Question
Customer reply replied 8 months ago
Ummm. That was not much help. I needed help filling out the 1040x form
Tax Professional: Barbara, Enrolled Agent replied 8 months ago

Will your son's college waive the requirement for the amendment if you provide the transcript from the IRS?

Ask Your Own Tax Question
Customer reply replied 8 months ago
I don't know
Tax Professional: Barbara, Enrolled Agent replied 8 months ago

I have no way to help you with filling out the 1040X because I do not have access to your documents.

Ask Your Own Tax Question
Tax Professional: Barbara, Enrolled Agent replied 8 months ago

Try calling the school and ask them if they will accept the IRS changes as proof that everything has been reported to the IRS.

Ask Your Own Tax Question
Customer reply replied 8 months ago
I need to know which lnes to get the information from on my tax return to fill in lines 1-17 on the 1040x
Customer reply replied 8 months ago
I can figure out calling the school all by myself. That is not the help I need
Tax Professional: Barbara, Enrolled Agent replied 8 months ago

I can assist you with line by line instructions for 1040X, but the price point of the question is too low.

Ask Your Own Tax Question
Tax Professional: Barbara, Enrolled Agent replied 8 months ago

I will opt out so another expert can assist you.

Ask Your Own Tax Question
Customer reply replied 8 months ago
Please cancel this charge. I will watch a YouTube video on it and get more information than you are giving me
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 8 months ago
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,221
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified

HI, MY NAME’S LANE - I hold a law degree (J.D.), with concentration in Tax Law, Estate law & Corporate law, an MBA in finance, a BBA, and CFP & CRPS (Chartered Retirement Plans Specialist) designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice 1986.

...

I am a different expert and can tell you exactly what you need to do here. let me know if you'd like my help

Ask Your Own Tax Question
Was this answer helpful?
Ask Lane Your Own Question
Lane
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,221
14,221 Satisfied Customers
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986

Lane 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
Filing an amended return. When filing an amended return for
Filing an amended return. When filing an amended return for S corp (1120S) for previous year do I need to include all forms included with original return, or only forms with any changes?… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
Irs tax question: If I file an amended return, will it
irs tax question: If I file an amended return, will it eliminate the understatement penalty? What should I do? Please provide IRS references.… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
I sent in an amended return for 2016. My turbo tax
Hi - I sent in an amended return for 2016. My turbo tax information said I would be refunded $1632.00. I just got a check for over $5,000 from the IRS and I'm confused. I think it's a mistake but if n… read more
Lane
Lane
JD, CFP, MBA, CRPS
14,221 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
Lane
Lane
JD, CFP, MBA, CRPS
14,221 satisfied customers
I submitted Form 1040X for my 2016 return in February. I
I submitted Form 1040X for my 2016 return in February. I checked the status on the web page and it showed that the form was processed on March 3. I have been informed by Socials Security that I need t… read more
Mark Anderson
Mark Anderson
Attorney
Doctoral Degree
10 satisfied customers
I received a cancellation of debt that increased my income
I received a cancellation of debt that increased my income by 6800, not they are saying my credit for my health care was too large and I owe the 4080 credit back. Does this sound correct? … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
I received several 1099s cancellation of debt forms and
I received several 1099s cancellation of debt forms and included them on my return. However, I received several more after I filed my taxes and want to know if I have to file an addendum OR if I can w… read more
Barbara
Barbara
Enrolled Agent
6,005 satisfied customers
Tax Question: Doing amended returns, is it better to do form
Tax Question: Doing amended returns, is it better to do form 1045? How does that work? There's an NOL from 2017 that needs to be applied to 2015. What are the advantages and disadvantages.… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I prepared my brother-in-law's taxes last year. He sold a
Hello, I prepared my brother-in-law's taxes last year. He sold a piece of property and not having dealt with something like that before, I put it down as other income. I am told that it is to be enter… read more
Lane
Lane
JD, CFP, MBA, CRPS
14,221 satisfied customers
NON PROFIT SCHOOL RENTS A BUILDING. THE ENTIRE BUILDING WAS
NON PROFIT SCHOOL RENTS A BUILDING. THE ENTIRE BUILDING WAS REPAINTED FOR $35,000. … read more
ABC Accounting Group
ABC Accounting Group
Bachelor\u0027s Degree
836 satisfied customers
I am a non resident of Delaware preparing my tax return & on
I am a non resident of Delaware preparing my tax return & on line 35a state income tax, I have to deduct my Delaware state tax from my itemized deductions. Do I also have to deduct my real estate taxe… read more
ABC Accounting Group
ABC Accounting Group
Bachelor\u0027s Degree
836 satisfied customers
Tax Question: Doing amended returns, is it better to do form
second opinion] Tax Question: Doing amended returns, is it better to do form 1045? How does that work? There's an NOL from 2017 that needs to be applied to 2015. What are the advantages and disadvanta… read more
Carter McBride
Carter McBride
LLM
1,072 satisfied customers
I'd like to file an amended return and include tax
I'd like to file an amended return and include tax deductions for repairs completed on my 4plex using a 203k fha rehab loan. Do you know if there are limitations in using tax deductions when the work … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I'm preparing an amended return for a client. The original
I'm preparing an amended return for a client. The original return as filed is set up for an electronic debit of a balance due on April 13th. In light of changed circumstances, the client will now rece… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I had to file an amended return after I filed with E-tax.
I had to file an amended return after I filed with E-tax. There is a mistake on their preparing my 1040. I tried to talk to them but I could not understand what they were saying. I am 92 years old and… read more
Lane
Lane
JD, CFP, MBA, CRPS
14,221 satisfied customers
I was mailed an cancellation of debt form from a debtor that
I was mailed an cancellation of debt form from a debtor that repossesd a car I had 4 hears ago, and the cancellation of debt was for 17,000. I bought the car in 2011. … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,240 satisfied customers
Are religious (church) non-profits required to file state
Are religious (church) non-profits required to file state and federal taxes annually? … read more
Lane
Lane
JD, CFP, MBA, CRPS
14,221 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
Retired
Bachelor's Degree
14,896 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