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I just got a notice from the IRS saying that my 2011 returns are being adjusted due to a MISC-1099 that I did not reported.

Santee, CA |

The supposed MISC - 1099 is for an a debt forgiveness for HUBCAP Bank / Best Buy that in 2012 were included in a BK . My BK was discharged in 05 / 2012 what can I do to get this take care of since the original debt was discharged

Attorney Answers 4

Posted

Contact the auditor and show your bk discharge and schedule E listing unsecured creditors

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2 comments

David Aaron Wiesen

David Aaron Wiesen

Posted

Attorney Ireland is correct that schedule F lists the unsecured non-priority creditors.

Bruce Givner

Bruce Givner

Posted

David is correct.

Posted

Attorney Weisen gave good advice.

Whatever notice you received from the IRS should have identifying information on it (a Notice Number, an address for a mailed response, a name and a phone number).

Make a call first. Even if you speak to someone and they say it is all good, follow up with a written letter including the Schedules F (listing the debt) and Notice of Discharge.

Good luck.

If you need further clarity, please email me at MICHAEL@MIRELAND.US Answers to questions are for general information purposes only and do not establish an attorney-client relationship. This is not legal advice, simply information. You SHOULD NOT act on this information without consulting a competent bankruptcy attorney in your area and providing ALL relevant information.

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Bruce Givner

Bruce Givner

Posted

Michael is correct.

Posted

Your description is a little ambiguous. As I read it, the IRS is saying that they are adjusting your tax returns for the 2011 tax year because you did not include income on your 2011 return from a 1099-MISC that was filed with the IRS for your 2011 tax year. Also, as I read it you filed bankruptcy in 2012 and included this same debt on your schedule of creditors.

If that is the case, then the 1099-MISC is reporting valid income from discharge of indebtedness that you should have included on your 2011 return because that debt was discharged in 2011, which would have been prior to your bankruptcy filing in 2012.

My answer does not constitute legal advice and may not be relied upon by anyone for any purpose and does not constitute an attorney/client relationship or an offer to form such a relationship. This disclaimer is intended to be fully compliant with the requirements of Treasury Department Circular 230 and the terms thereof are fully incorporated by reference. If you wish to consult with me please contact me at dana@nytaxcounsel or visit my website at www.nytaxcounsel.com

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Bruce Givner

Bruce Givner

Posted

Dana is correct.

Posted

Debt forgiveness is shown on a 1099-C and not a 1099-Misc. If you are 100% sure it is a 1099-Misc, you need to find out exactly what it is from. If it is a 1099-C, you can exclude the income to the extent of insolvency using a Form 982.

Christopher Larson
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