Received 1099A from house that went thru chap 7 in 2009

[anne71]

I received a 1099A form in the mail this weekend of course after I already have my taxes done but not sent. The 1099 is from Greentree and they have reported as fair market value $1.34 million when it should be $134,000. I called and told them they need to fix it, and they won't fix it until I fax something to them in writing that it needs to be fixed. I told the representative that to me it looks like fraud on their end. The rep agreed but said nothing she could do. So on My end I am confused on what I need to do. The house went through the bankruptcy in 2009 but did not foreclose in till the end of 2013. Do I need to do a 982 form and have my taxes corrected? Or do I just ignore it? I contacted my attorney and they had no idea what I needed to do. If I am reading it correctly, I don't think I need to change anything on my actual taxes that are completed just attach that 982 form. I tried to call the IRS and after waiting on hold for 30 minutes was directed to a line that said they no longer assist over the phone and to go to their website. I know there was a bunch of blogs on this site explaining but I read either way so I got a little confused. I thought all this was behind me. Thank you for any answers you may have.

[justbroke]

I can't provide tax advice as I'm neither a tax professional nor tax attorney. Personally, if I had not yet filed, I would seek to have the form corrected. Of course if you have already determined that you owe the IRS money, then submit an extension request and pay what you owe before April 15th (or whatever the last day to file without penalty).

I would also seek some tax advice from a tax professional in person.

(The real kicker will be whether that bank sends you, later, a form 1099-C.)

(As a joke, I would have called GreenTree and asked for my net proceeds from the 1,340,000.00 sale. )

[anne71]

But I shouldn't owe anything if the house was included in the Chap 7... or do I??? UGGG!!!

[justbroke]

But I shouldn't owe anything if the house was included in the Chap 7... or do I??? UGGG!!!

No. You should not. I just don't want you to have a 1099 issue later. (I had an issue where I was erroneously issued a 1099. Years later it came up and the IRS sent me a notice that I had a balance due, plus penalties. It took me nearly 3 years to get that fixed!)

I'm just letting you know that the IRS will "literally" take the 1099 at face value. As to whether or not a 1099-A has a greater potential tax impact than a 1099-C... I leave that answer to the tax professionals.