Received a 1099-A or 1099-C
“YOU MEAN I HAVE TO PAY TAX ON IT?!” Is the initial response of persons who receives a 1099-C or 1099-A. “BUT, I lost everything, my house, my business.” “I didn’t get anything!” Recipients don’t want to hear, “Yes, the General Rule is that Forgiveness of Debt is income”……..unless. Simply stated, the 1099-C or 1099-A needs to be reported on the annual income tax return of the recipient, but where.
WHAT ABOUT THE “UNLESS?” Even though the recipient may qualify for one of the exceptions or exclusions, the 1099-C and 1099-A is reported on the return and calculations are made that determine if any portion of the forgiveness is taxable to the recipient in the current year or in a later year. Yes, sometimes taxability of forgiveness of debt is deferred, not forgiven.
WHAT CAN YOU EXPECT FROM THIS WEBINAR?
- A list of potential exceptions and exclusions that could apply
- Box by box discussion of 1099-C and 1099-A
- Questions to ask the recipient
- Records needed from recipient
- Calculations that need to be made
- Elections that are available
- Definitions and meanings of terminology
- References to helpful worksheets and forms
WHO SHOULD ATTEND?
- Any Paid Preparer of individual income tax returns: CPAs, EAs, or Attorneys
- Any person who anticipates the cancellation of debt, foreclosure, abandonment of property and/or receiving a Form 1099-C or 1099-A.
- A preparer of Forms 1099 who is curious as to the effect of a Forms 1099-C or 1099-A upon the recipient.
Greta is a former IRS Revenue Agent and Regional Training Coordinator. After a stint as tax manager for Ernst & Young, Greta started her own business and for 34 years her CPA practice has been limited to representing persons who have IRS problems. She is the author of “IRS Examination and Appeals Procedures” on www.CCH.com as well as, pilot tester of on-line continuing education courses for Thomson-Reuters. Greta has authored a number of continuing education courses on IRS pr... View Full Profile