Bank of America 1099-C forms were sent in error

[Epic]

Heads up for those of you who have received or will receive a 1099-C Cancellation of Debt from Bank of America for 2012. I filed BK7 in 2011 and received a 1099-C (2012) for a home equity loan that was discharged in 2011.

I called the number that came with the 1099-C and was redirected to call 888-702-1161. The rep stated that "a bunch of 1099's were sent in error and the IRS was not notified" She mentioned they will be sending a follow-up letter in April.

I'd still call to confirm if you receive one, but in typical BofA fashion this was sent in error.


Let us know your results if you received the same thing.

[HHM]

Technically, it is not an "error", they can issue the 1099-C for debt discharged in BK, they don't have to, but it is not technically wrong for them to do so.

If you get a 1099-C, be sure to do IRS Form 982, it really isn't a big deal.

[Epic]

Even though I filed in 2011 and this debt was forgiven in 2012? Should I expect to start receiving a bunch of 1099's from my 2011 BK?

[HHM]

I doubt you will receive any more.

Was the BK also discharged in 2011? If it was, then the 1099-C is an actual error.

[Fallonedward]

Heads up for those of you who have received or will receive a 1099-C Cancellation of Debt from Bank of America for 2012. I filed BK7 in 2011 and received a 1099-C (2012) for a home equity loan that was discharged in 2011.

I called the number that came with the 1099-C and was redirected to call 888-702-1161. The rep stated that "a bunch of 1099's were sent in error and the IRS was not notified" She mentioned they will be sending a follow-up letter in April.

I'd still call to confirm if you receive one, but in typical BofA fashion this was sent in error.


Let us know your results if you received the same thing.

My 1099 stated that I asked to discharge the debt and my attorney stated that I would be liable for the tax if I did not get BoA to change the classification on the form. I discharged the 2nd in BK back in 2010. So I would recommend that everyone follow up if you get this error

[HHM]

Generally, any 1099-C is more easily solved by simply filing Form 982 with your taxes versus trying to get BofA or any other lender to withdraw of change the 1099-C.

Just depends on the circumstances.