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

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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

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

Submitted: 11 months ago.Category: Tax
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9/18/2017
Tax Professional: Barbara, Enrolled Agent replied 11 months ago
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 6,691
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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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?

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Customer reply replied 11 months ago
Credit card
Tax Professional: Barbara, Enrolled Agent replied 11 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.

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Tax Professional: Barbara, Enrolled Agent replied 11 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.

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Customer reply replied 11 months ago
Is this $52 in addition to the $41
Tax Professional: Barbara, Enrolled Agent replied 11 months ago

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

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Tax Professional: Barbara, Enrolled Agent replied 11 months ago

There is no reason for the additional fee to you.

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Customer reply replied 11 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 11 months ago
Are you here?
Tax Professional: Barbara, Enrolled Agent replied 11 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.

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Tax Professional: Barbara, Enrolled Agent replied 11 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.

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Customer reply replied 11 months ago
it was. He made many mistakes. I am no longer using him
Customer reply replied 11 months ago
Why a 1099c and not a 1040x?
Tax Professional: Barbara, Enrolled Agent replied 11 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.

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Customer reply replied 11 months ago
I understand that. Why didn't the IRS ask for an amended return?
Customer reply replied 11 months ago
I do not have a copy of the 1099-c from the credit card company
Tax Professional: Barbara, Enrolled Agent replied 11 months ago

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

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Tax Professional: Barbara, Enrolled Agent replied 11 months ago

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

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Tax Professional: Barbara, Enrolled Agent replied 11 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?

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Customer reply replied 11 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 11 months ago
No letter from the IRS
Customer reply replied 11 months ago
It is for a $1786.00 cancellation of Debt
Tax Professional: Barbara, Enrolled Agent replied 11 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.

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Customer reply replied 11 months ago
The IRS changed my refund amount from what the accountant put on my tax return
Tax Professional: Barbara, Enrolled Agent replied 11 months ago

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

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Customer reply replied 11 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 11 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.

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Customer reply replied 11 months ago
Can I find the information on the tax transcript from the IRS?
Tax Professional: Barbara, Enrolled Agent replied 11 months ago

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

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Customer reply replied 11 months ago
I have that but the IRS made changes
Tax Professional: Barbara, Enrolled Agent replied 11 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.

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Customer reply replied 11 months ago
The account transcript shows the corrections the IRS made. They did not ask for an amended return
Customer reply replied 11 months ago
This just cost me $41 for you to tell me to go to an accountant???
Tax Professional: Barbara, Enrolled Agent replied 11 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.

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Tax Professional: Barbara, Enrolled Agent replied 11 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.

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Customer reply replied 11 months ago
Ummm. That was not much help. I needed help filling out the 1040x form
Tax Professional: Barbara, Enrolled Agent replied 11 months ago

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

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Customer reply replied 11 months ago
I don't know
Tax Professional: Barbara, Enrolled Agent replied 11 months ago

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

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Tax Professional: Barbara, Enrolled Agent replied 11 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.

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Customer reply replied 11 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 11 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 11 months ago

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

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Tax Professional: Barbara, Enrolled Agent replied 11 months ago

I will opt out so another expert can assist you.

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Customer reply replied 11 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 11 months ago
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,901
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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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

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