1099 for discharged debt ??

[sunshine mary]

My husband received a 1099 today for a debt that was discharged with our bankruptcy ( 7/08 ) I guess I'll take it to me accountant with our tax documents but I am confused has anyone else gotten one of these for a discharged debt ????????????????

Thanks

[StartingOver08]

Not supposed to get one with discharged debt. Only debt that has been settled. Ask your accountant what to do to correct it because a copy has been sent to the IRS as well - so there must be a form to file.

[magyar123]

Totally illegal to issue 1099s on legally discharged debts. Make a copy of that 1099 and send it with a letter back to the issuer asking why TF they sent you this 1099.

[StartingOver08]

That's what I like about you magyar...you tell it the way it is!

BTW, can't the OP get sanctions from the CA/OC for filing the 1099? Wouldn't that be interesting if the OP can get the CA/OC to pay them money for violating the permanent discharge???

OP, check with your attorney too.

[keepmine]

Go to the IRS site and enter form 982 in the search function. That's the form you use to deal with 1099's issued for debts IIB.

[HHM]

What was the nature of the debt?

If the debt is related to a business or investment purpose, the reporting entity is still required to issue the 1099-C.