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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You don't have to pay taxes if you don't want to, but you may be subject to fines and punishments depending on where you live.
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.
Un-answerable. (first by "you" I suspect you mean "everyone"). All taxes are paid by someone, or something (a company for example). But not everyone pays all taxes, certai…nly not all the time. What taxes are paid depends on what you define as taxes, who, what, where you are and what your doing..as well as many other things. (For example...you could well pay "death" taxes...that is taxes due upon the transfer of your assets on death...but it seems true, you'll only pay those once, and only if you have assets of the type and amount that these taxes apply to). Change the request to "How many citizens of Wisonsin pay state income tax?"
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...
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.
something you exchange with a friend that the gov. does not know about.
Any amount that you owe to the UNITED STATES TREASURY DEPARTMENT for the 2009 federal income tax was due to be postmarked by midnight April 15, 2010. ans The above is co…rrect as a statement but not as it relates to your question, and I'll bet the submitter knows that! You PAY your tax during the year while it is being made. This is done by payroll (or other types) of withholding on income, or by making estimated quarterly payments (as required by law), on a 1040-ES, for the self employed or those who otherwise don't have enough paid in. By April 15th you must file a return and extension and, as the estimates are just that, settle up financially with the Gov't (that is pay the additional amount or get the excess refunded). If you paid less in, or paid estimated amounts later than the law requires, you will be subject to additional penalties and interest, which may be substantial.
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.