Do you have to file a 1099 c if you filed bankruptcy?
Yes. The IRS considers any forgiven debt as income, so you must file the 1099 to show the amount of debt that was forgiven.
2 people found this useful
\n. \n. \n Amending A Tax Return \n. \nYou will have to file an ammended return, you can download the form free from the IRS website, but you have to mail it in becaus…e an ammended return has to be in paper form (not e-filed).\n. \n. \n . \n Refile a corrected return. The IRS web site will give you the details, but you simply copy the data from your old form and add in the new information. Then you will have to provide a check for the new amount due. There is a specific way to mark the return so they know it is a corrected return.\n. \n. \n . \n You will need to file an amended return. This is done on a Form 1040X. It is different than the normal 1040 and much shorter. It too is available on most PC programs if you did your return that way. You will probably find the 1040X fairly easy. Actually, you only have to input the things that changed...pretty much just on the identified line - like interest income - as filed, the new amount, the change (up or down) - and the resulting totals. True, if your change is from a new or corrected W-2/1099, that may need to be submitted too.\n. \nIf your receiving any W-2/1099 or such, this late, make sure they are actually for the 2006 year, not 2007! (I've received some 1099B for 2007 already).
Bankruptcy should always be the very last step. Many people take the effects of bankruptcy fairly lightly. Basically, you must be so far in debt that there is no other option.… The article below lists some questions to ask yourself before declaring bankruptcy. The pay-off needs to be completely worth the many negative effects.
You would first want to find an attorney to represent you, then start referring creditors to the attorney. Then file-or if you have a lawyer, he or she will do it-a bankruptcy… petition for whichever chapter you have decided on/qualify for. Then you will meet with all of your creditors, your attorney, and possibly a bankruptcy trustee. If you are filing on your own, you will want to do a large amount of research on how to go through this process. The article below goes into more detail on the process.
You should at least consult with a bankruptcy attorney. Most BK lawyers offer a free initial consultation. Don't hire one unless you feel comfortable. If you wish to file your… own, you may be doing it at your own peril. Some BKs are relatively straight forward and you can get through it. Most are complicated. Whether you use an attorney or not, be sure and consult with a qualified attorney.
ALL debts and ALL assets MUST be included. You cannot pick and chose what is included. Your entire financial obligations and assets are involved. You go BK, not a debt. Ea…ch type of obligation or asset are given different priorities (or status) of payment, with assets being used to pay obligations. Some assets and some debts may be exempt, but they are included and given that status. That basically becomes a court decision. They are included, but NOT dischargeable, like court fines, restitution, child support and some others. .
Forever.. In short...the SOL does not run until a complete return is filed (and many things "toll" - meaning stop the counting - afterward - like the time between receiving a…nd responding t oa letter from the IRS. Failing to file a rerturn simply means the SOL never starts, and you are perpetually open to assesment - and of course, once that happens, figure you'll be audited vigouraously becakwards and forwards.. A 1099 become spart of a return, which if you file and understate income by 25% also stops the SOL from running. And of course, as the IRS computers receive the same info on the 1099 you do, and look for it on the corresponding return (computers are pretty good at matching things)...is one of the easier to detect failures.
It's slightly different depending on whether or not you are going through a lawyer. If you are not, you will basically file a ton of paperwork with the government. It requires… a ton of specific information that you may not be used to giving out. The application is long and pretty confusing and should not be done hastily.
The purpose of bankruptcy is to allow for a way for an individual or business to get out from under mounting debt that is so large that they cannot move forward financially in… any manner. It really hurts credit, obviously, but the idea is that after all the debt is settled, the person that filed can start moving in a positive manner financially. And the only way to help with your credit post bankruptcy is to learn certain skills about managing money and strategically and responsibly engaging in forms of credit and payback.
Not being able to pay bills is one thing but filing forbankruptcy is another. many of us find it difficult to know how tofile it.. Youneed to start off by talking to your… bankruptcy experts orattorneys. They should be able to help..
Bankruptcy is a legal tool individuals and companies use when they are no longer able to repay debits. In the United States their are two sorts of personal bankruptcy. 1) C…hapter 13 Bankruptcy, or reorganization Bankruptcy lets an individual work with their creditors to pay back debts without the threat of foreclosure or harassment. This lets someone do the right thing and pay people back. 2) Chapter 7 Bankruptcy is a more extreme step. During Chapter 7 one continues to make essential payments while paying nothing to other creditors. Next, all assets are liquidated and distributed to creditors. .
A 1099 is a tax form used to report and pay taxes on income other than wages and salaries. Such income could include interest or dividends paid you from your investments or …work you contracted to do. Taxes are bit calculated and paid for income from 1099's which means it is your responsibility to pay them when you file your taxes. And YES you do have to file them.
There are disadvantages and advantages in filing for bankruptcy that should all be considered before making such a major decision. Some other disadvantages include: Losing cre…dit cards, Losing non-essential possessions, Inability to obtain a mortgage for some time, Embarrassment. Lastly, you have to consider the fact that not all debt is dischargeable and bearing that in mind you need to look at your debt and what can and cannot be discharged.
As a general rule, you file Chapter 7 bankruptcy in a dire financial emergency, where the level of debt is overwhelming and beyond your ability to reasonably pay it off. Mo…st Bankruptcy attorneys advise that $10,000 is the min. amount of debt that anyone should have before consider filing Chapter 7. Anything less, they say, is probably manageable There are a lot of myths and misunderstandings about filing for Chapter 7. One of them is that filing will clear your credit report and give you good credit again....it does not. You get a "fresh start" in that private debts will get discharged, so you do not have to pay them. But your credit score and rating will go down the tubes, and will take a while to recover. This means that you will have a very difficult time when applying for any loans in the future. So you should think long and hard before filing bankruptcy and only do it in cases of financial calamity or emergency. For more on the specific filing procedures and bankruptcy laws of your state, you may want to visit 4BankruptcyLaws.com
There are some complexities here, but the short answer is maybe (of course, it is never easy when dealing with the IRS). If the mortgage (or HELOC, Credit Card, Car Loan, etc…) was only in one person's name... then the 1099C belongs only with that person. No wiggle room here. If, however, the note was in both names, and both were responsible, then you could perform a split. You would need to include an explanation with your return that details your ex's Name and SSN, and likewise they should do the same on their return referencing you. This ensures that the whole debt is accounted for, but each of you becomes responsible for your own share - note it doesn't have to be a 50/50 split, but you do need to reach an agreement, otherwise it could come back to haunt you. A note about cancelled debt - you don't say what type of debt this is, but it is possible it can be excluded entirely by submitting form 982, therefore it does not matter who claims the amount. At a high level - in order for 982 to apply, there would have to be a bankruptcy, insolvency, or the debt must be fully representative of primary residence indebtedness. You should talk with your tax adviser to see if form 982 applies to your situation.
Typically when you file bankruptcy, you have to disclose all theassets that you have. And so everything you own can be susceptibleto review by a bankruptcy court. However, ce…rtain assets can not be touched because they areconsidered essential for either your well-being or your means ofmaking a living. A car sometimes can not be touched because it isconsidered vital to your ability to make a living. However, different states have different laws on the treatment ofassets. I would highly recommend you check the laws in your state.
Gains from a sale, or interest earned on a deposit are income, and must be reported.
The first step in understanding financial distress is realizingthat you are in financial trouble and need help. Contact abankruptcy attorney in your area for a free initial co…nsultation.First, bankruptcy can stop creditor harassment. Many creditors willcall you all day, every day, any time of day. Bankruptcy provides afresh financial start by making it illegal for creditors to contactyou. This can be your first sigh of relief. Even once you haveretained a bankruptcy attorney, you can tell creditors who contactyou that you are in the process of filing bankruptcy, and theyshould direct the calls to your attorney's office.