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Cancellation of debt (1099-C)


newlifewcc
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just received a notice from  the IRS related to my 2011 tax return.  It seems CapOne filed a 1099-C in Dec. 2011 for debt discharged/cancelled in my 1999 bankruptcy in NJ.  I currently live in RI. 

 

Isn't there a statute of limitations on this?  My guess is this was triggered by my new account with CapOne opened in Aug. 2011 in RI. 

 

Can I request validation on this?  Obviously I never received the 1099-C since they haven't had my address in years! 

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File an amended 2011 tax return with form 982 where you show that the debt was cancelled in BK. This should take care of the deficiency notice. Make sure to use the form from 2011, not the one from 2013.

If you are unsure as to how to do this, either ask the BK attorney or find a tax prepared or CPA to help you. BK is one of the things that cancels out a 1099-C.

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  • 1 month later...

I agree, you can't let this go.  But the 1099-C is inaccurate since the debt was discharged in 1999.  That discharge required them to send the 1099-C then.  I would write this all in a letter to the IRS with a 2011 982 asking why this isn't an inaccurate 1099-Ct and why Capital One isn't sanctioned for filing same..  But I would also file complaints with the CFPB, the Comptroller of Currency and your state Attorney General for filing a false report with the IRS.

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