Hi guys,
I have a question please. I filed my tax return on Feb 3. I am getting a refund which i get to keep. Yesterday i got a 1099-c on the mail from a Creditor. I was really in panic mode because i thought the IRS was going to include this as added income and they would take half my refund.. I really needed my refund this year to fix things in my home that i haven't had the money to do.
After researching this i seen that debts are not taxable income in BK. You only need to fill out form 982 to show the IRS you were in BK protection and the debt does not exist anymore. I have been hearing conflicting things from my Accountant and another Account as well.
My account said the IRS will hold my refund and send out a letter asking for more info to be sent to them on the 1099 which would be an amended return. He said they usually wait to process amended returns in August and then it will take another 6-8 weeks to process my refund, and of course not getting my return till MAYBE September/October. I was crushed as i was really relying on this money...
The other Accountant said they will not hold my refund, but will send out a letter explaining i had 2 years to amend my return. She said just wait till next year and file form 982 with my return. She said it was no big deal because many companies send out late 1099's after ppl already filed, and the IRS would rather you file it next year then amend it this year, which is why they give you 2 yrs. I'm not sure who is right...Has anyone else gotten a 1099-c after they filed their taxes and had their refund held till they amended?
I have a question please. I filed my tax return on Feb 3. I am getting a refund which i get to keep. Yesterday i got a 1099-c on the mail from a Creditor. I was really in panic mode because i thought the IRS was going to include this as added income and they would take half my refund.. I really needed my refund this year to fix things in my home that i haven't had the money to do.
After researching this i seen that debts are not taxable income in BK. You only need to fill out form 982 to show the IRS you were in BK protection and the debt does not exist anymore. I have been hearing conflicting things from my Accountant and another Account as well.
My account said the IRS will hold my refund and send out a letter asking for more info to be sent to them on the 1099 which would be an amended return. He said they usually wait to process amended returns in August and then it will take another 6-8 weeks to process my refund, and of course not getting my return till MAYBE September/October. I was crushed as i was really relying on this money...
The other Accountant said they will not hold my refund, but will send out a letter explaining i had 2 years to amend my return. She said just wait till next year and file form 982 with my return. She said it was no big deal because many companies send out late 1099's after ppl already filed, and the IRS would rather you file it next year then amend it this year, which is why they give you 2 yrs. I'm not sure who is right...Has anyone else gotten a 1099-c after they filed their taxes and had their refund held till they amended?
Bankruptcy Wizard
Comment