What would you like to do?
A 1099-C is a cancellation of debt form. The technical answer to your question is yes, however, under certain circumstances you may be able to avoid paying by showing insolvency, like in the case of a foreclosure. A 1099-C applies when you borrowed money, since you were expected to pay it back then in that instance you are not required to pay back. When the situation arises and you are unable to pay the debt, the lender has to cancel the debt, however, at the time the debt is cancelled the amount you had borrowed becomes income since you are not going to pay it back. In that case, like almost all income it is subject to income taxes. There are exeptions, like in the case of a foreclosure, however, you have to qualify. To figure out if you qualify it is imperative that you check with an excellent accountant or someone that deals with tax liability (i.e. Enrolled Agent) and understands tax law. Hope this helps. Roger Hadad, Effectur Inc., www.irs101.blogspot.com
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Because we are required to pay the federal income taxes on our gross worldwide income.
Answer You mean you received a 1099C right...you had (cancellation of debt)income because you had a bankruptcy or failed to pay what the persdon issuing it to you… had loaned you. In any case, no matter what the circumstances, the facts haven't changed....just the name of who you owe that debt to. That doesn't change anything about your accounting, taxability or reporting obligation.
See the "Grace Commission Report". The report said that 100% of what is collected is absorbed solely by interest on the National Debt, and by federal government contribution…s and transfer payments. In other words all individual tax return revenue is gone before one nickel is spent on services that taxpayers expect from their government. These services are funded by new loans made by the Federal Reserve to Congress. Another Perspective Taxes pay for government programs the help people, government programs that support research of all kinds, education at all levels, early intervention programs, medicare, social security, public libraries, hospitals, roads, bridges, school buildings, parks, neighborhood clinics, medical assistance for the poor, education grants and loans, snowplowing, water systems, sanitation facilities, waste- collection and disposal, fire departments, police departments, CIA, FBI, IRS, ACE, FEMA, national parks, teachers, military, defense, military bases, build and maintain, government facilities, foreign aid, federal census, food stamps, judiciary, state and federal courts, and so many other necessary and unnecessary things.
WE PAY TAX TO THE GOVERNMENT SO THE GOVERNMENT CAN USE THE MONEY FOR BUILDINGS, PUBLIC SERVICES, SCHOOLS AND NEED. WE PAY THE MONEY TO THE.............................….......................................
tax is for the city. the money you pay in tax goes to the city and is used to improve parks,street cleaners library, public pools, etc. anything that is used for the city. som…ething like that.
Because someone has to pay for the roads and social programs. If you don't want to pay for this, vote for politicians that want to eliminate taxes and make everything pr…ivate.
We have to pay taxes because the government needs to pay for its various functions.
Michael lake and Amish...
Taxes don't actually pay for anything. They go to the Federal Reserve, which is a private owned corporation, not run by the government.
See my answer to post "Collections after 1099c???" A creditor will send you, the debtor, (and the IRS) a copy if they have decided to cancel (forgive) your debt by issuan…ce of a 1099c which means they will give up their right to any further collection of this debt.
If you mean INCOME TAX, with virtually no exceptions,, In the U.S.A., everybody who has income has to report, while payment actually starts, depending on factors like narriage…, health, etc, at around12,000. Age, occupation, retired or not,etc are not factors in the determination.
If a copy of 1099C has not been sent to the state, how would the state know?
Federal taxes are paid to the Internal Revenue Service.