i filed my taxes last year then got a 1099c

[bobcat]

i filed my taxes last year then got a 1099c after i filed my taxes the IRS sent me a tax bill for $2500 the other day, i called the IRS they said to fill out a insolvency worksheet and sent it in to the IRS, i filed for bankruptcy last week, should i let the IRS know that i have filed for bankruptcy, i check my credit report, the debt for the 1099c is still on my credit report the creditor just updated the debt.

[TXskyblue]

I don't know much about 1099c's, but I believe the IRS is automatically included in the matrix so they will get notified that way.

[tobee43]

amend your return and include the 1099c with a tax form 982. you will be fine.

[bobcat]

1099c

amend your return and include the 1099c with a tax form 982. you will be fine.

i can't find my 1099c

[bobcat]

insolvency worksheet?

amend your return and include the 1099c with a tax form 982. you will be fine.

Should i use a insolvency worksheet i called the IRS they said something about the insolvency worksheet. Also should i amend my 2012 taxes and send the insolvency worksheet with my amended taxes, also should i tell my bankruptcy lawyer about the $2500 tax bill before he files the bankruptcy next week. thank you

[spidge]

I would make sure the attorney knows everything, and amend the return and include the insolvency form. I used this form one year and did not hear a peep from the IRS.

[tobee43]

most attys know very little about taxes unless they are tax attys...even many accountants up until a few years ago rarely saw 1099 C A S etc Misc are more common and easier to deal with.

the tax form 982 covers and is the insolvency information you communicate to the irs. you can't find the 1099c is what you are saying? you should be able to get a copy, however, instructions for filling out form 982 can be found in IRS Publication 4681, including the insolvency worksheet, which also include instructions on how to fill out form 982: reduction of tax attributes due to discharge of indebtedness -off hand is as follows:

if you had a debt cancelled during the tax year, you generally need to report this as income on your return. however, if any of the following apply, you may be eligible to exclude the cancellation of debt from your income. you may exclude the cancellation of indebtedness if it was as follows:

discharge of qualified principal residence indebtedness
discharge of indebtedness in a title 11 case
discharge of indebtedness to the extent insolvent (not in a title 11 case)
discharge of qualified farm indebtedness
discharge of qualified real property business indebtedness

most taxpayers will only qualify to exclude debt for reasons 1, 2, or 3. generally, most individuals do not qualify to exclude debt for reasons 4 or 5. if any of the above apply to your cancellation of debt, you can exclude the applicable amount from income by first reporting it on form 1099-C. you would then report the amount that qualifies for exclusion on form 982.