1099c

[pdecur]

Yesterday in mail I received a letter from the IRS about some 1099cs from 2004.

I did not included them on my tax return because I had not received them yet. Anyway, at the begining of 2005 I filed my Chapt 7 bankruptcy. Everything when smooooth. I am thinking all I need to do is send the IRS a copy of my filing paperwork (creditor notice and proof of insolvency that went with filing). Do you think that is enough?

Tried to talk to someone at the IRS but my ear was going numb waiting for someone to call.

[StaciMM]

Did you settle any credit card accounts (or other debts) in 2004, where you paid less than the full balance?

If you filed ch. 7 in 2005, but received a 1099C for 2004, its likely something that happened in 2004.


Edited-I looked at some of your older posts, and see that before you filed you paid a debt negotiation (AKA settlement) company for a year before filing BK. If they settled an account for you, that is probably where the tax bill is from. And, if that is the case, the 1099 is not going to go away.

[pdecur]

Yes they did come about because of the debt settlement company. If I was insolvent at the begining of 2005 (when ch 7 declared) then it stands to reason that i was insolvent at the end of 2004.

How do you suggest I prove this. Clearly states that insolvency discharges debt.

[StaciMM]

There are different rules to discharging IRS/tax debt. I don't know the details, but one of the big ones is that recent tax debt is not dischargeable. (I'm not sure if it has to be 3 years old, or more than 3 years old. Something about 3 though...)

Chapter 7 does not automatically get rid of tax debt.

[AMISLANDER]

Not to be rude...but

Yesterday in mail I received a letter from the IRS about some 1099cs from 2004.

I did not included them on my tax return because I had not received them yet. Anyway, at the begining of 2005 I filed my Chapt 7 bankruptcy. Everything when smooooth. I am thinking all I need to do is send the IRS a copy of my filing paperwork (creditor notice and proof of insolvency that went with filing). Do you think that is enough?

Tried to talk to someone at the IRS but my ear was going numb waiting for someone to call.

This is the only part of this forum where we talk about things that "do not pertain" to bankruptcy. Please read the heading of the forum you are posting in. Thank you.

[newstart]

I contacted the IRS also and was unable to speak to anyone but on the 1099c it did say if I am correct the form did say that if the debt was discharged in bk it does not need to be filed. I would certainly hold for 2 days to speak with someone from the IRS to be positive.

[pdecur]

This has nothing to do with the bankruptcy itself.

From reading the posts (not to be rude) I don't anyone understands the inquery.

I know tax debt is not dischargeable--this was not part of bankruptcy.

The debt can be forgiven if insolvency is proven.

If I send the paperwork from my bankruptcy proving insolvency will that be enough?

[SinkingFast]

I wouldn't rely on anyone at the IRS giving you the correct answer. You can call with a simple question, you already know the answer to. Speak to 10 different IRS reps and get 10 different answers. AND, the IRS is not responsible for incorrect information given by reps who answer the phone. The phone reps typically aren't seasoned IRS employees with extensive experience or knowledge about taxes. Most are temporary employees given limited training to work the tax season only.

I'd suggest you chat with your BK attny about this. If you can't get a satisfactory answer from you BK attny, consult a Tax Attny. There are attny's that specialize in Tax issues, just like Family Law, and BK, and Criminal Law, and such.

Just a thought for you.

[alh]

See if this link helps some.

http://www.nolo.com/article.cfm/ObjectID/63E64ADE-B509-4850-803EAFC794283FC0/catID/8DA53DB0-172E-4CFD-94C67EF8DD1E31BA/213/208/212/ART/

If you were insolvent at the time the debt was settled or canceled, fill out IRS form 982.