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Taxes and 1099c not recieved


kutuzov
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All right I'm home for a few days after a long 60+ days of driving an 18 wheeler OTR. So I plan on doing my taxes. I sue a JDB and they settled, so that would be an income, also they forgive the debt was about 900, all is in paper and signed. Then I settled with an OC, crap1 a debt of about 3800 for 2600, also is all on paper and signed, My wife also settled a debt with Discover of about 2400 for 600, same all is on paper signed. I got all my other paperwork to do the taxes, W2's etc. but this guys the 3 of them didn't send me crap. I guess they got until January 31 to send you all paperwork, but as of today none of the 3 send nothing.

 

So to do my taxes do I need any paperwork from them or I just throw it in there? also since they didn't send me crap can I sue them? I mean they are suppose to send it right?

 

Advice help etc. highly appreciated.

 

My taxes this year are a bit complicated so I will need help. I get special deduction for OTR driver, for each day away from home, plus all the rest, plus I cash my 401k and pension plan, and also other staff.

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Funny, I sold my trucking biz a few years ago and retired. Ah the good life of being old and retired....LOL. Anyway, the way I understand it, is if you don't receive a 1099-C, your suppose to figure out what you owe and pay taxes on it, though most people don't. But, I've seen it wriiten that, that is what your suppose to do sso that eventually when it catches up to you, you will be okay. Good luck, make your own decision.

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In this case, whether you are accrural or cash basis taxpayer, the income is considered to be received this year. This means that whether you get a 1099-C or not. Most taxpayers however do not do so because their line of thinking is if the IRS does not know about the income, it did not happen. However, in your line of work, I am sure audits are intensive so it would probably uncover this.

If they do send a 1099-C in a latter year, simply attach a note and a copy of the 2013 tax year form you files showing that you already paid the taxes in a previous year. If the IRS gets insistent, then pay the taxes and then file an amended return for the 2013 year to get a refund of the taxes paid on the income plus interest.

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To my understanding the OC's have up to three years to issue a 1099C and they will note the date of charge off/write off/cancellation on the form.  You don't have to claim the income until you receive the 1099C.  If the date is before the current tax year then you will have to fill out a 1040X (amended tax form) for the year the income was written off.  

 

You can also call the IRS sometime in August and ask for information of any outstanding 1099C's that may be out there and filed.   They may have sent it to another or old address and it was tossed by the recipient. 

 

For 2013 they were susposed to send the form on or before the 28th of Jan 2014. 

 

Claiming income with no 1099C will create more trouble and you should wait until they have sent the form or you discover the unreceived form via the IRS call.

 

I'm not telling you to ignore the income, but filing on income not reported unless you are a business and file a SCH C/Partenship/Corporation return with your 1040 will create an erroneous paper trail.  Wait until required reporting time is up or you have discovered a zombie 1099C then you file the correct forms.

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You may have to have some discussion with the IRS but once you show someone with 2 functioning brain cells there that in the end, they would pay out more than they would collect, you should be fine.

I ran into a similar situation being an independent contractor. I did my accounting on the accrual basis and my major client did accounting in the cash basis which caused the 1099-Misc to be out is sync with what I reported. In my case, I had actually declared the income received in the following year in the previous years tax forms.

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I have to disagree with you here CreditVortex. The issue is that because the OP is a truck driver, they have different rules which are complex enough to where the IRS will look more closely at the return than for the average taxpayer. Hence, better to include the income now and if the 1099-C comes in later, deal with it then.

Besides, if he declares the income now, the IRS has only 3 years to review the form. If the OP ends up filing a 1040-X, that opens up the look back period to 3 years from the filing of the 1040-X. Also, waiting for the IRS letters can create issues of their own.

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I have to disagree with you here CreditVortex. The issue is that because the OP is a truck driver, they have different rules which are complex enough to where the IRS will look more closely at the return than for the average taxpayer. Hence, better to include the income now and if the 1099-C comes in later, deal with it then.

Besides, if he declares the income now, the IRS has only 3 years to review the form. If the OP ends up filing a 1040-X, that opens up the look back period to 3 years from the filing of the 1040-X. Also, waiting for the IRS letters can create issues of their own.

 

Whoa if the IRS suspects fraud they can go back to the beginning of time for an audit. (This is from an IRS criminal investigator)  As a truck driver don't you file a SCH C as an independant contractor and should be reported as I noted above or claim the unreimbursed expenses on your 1040 under adjustments to income to figure your AGI?

 

ADDED:  How do you figure the reported income without a 1099C? 

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Figuring out the income is easy in my case. All papers where filed with the court so I look at the complaint $# and then substract the settlement amount and I got it. It's all filed with the court and signed so is a simple substraction.

I went to hr block and they can add it as forgiveness of debt. If I get a 1099c later on I can amend the 2013 tax return. I normally so the taxes on my own but not this year. I'm just a company driver not contractor so I do the dot hours of operation thing.

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This is from the IRS website http://www.irs.gov/taxtopics/tc431.html :

You must report any taxable amount of a canceled debt for which you are personally liable, as ordinary income from the cancellation of debt, on Form 1040 (PDF) or Form 1040NR (PDF) and associated schedules, as advised in Publication 4681 (PDF), Canceled Debts, Foreclosures, Repossessions, and Abandonments (for Individuals). You must report the taxable amount of a taxable canceled debt whether or not you receive a Form 1099-C.

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I did my taxes, I did the cancelation of debt on it, and the income from the lawsuit. I also purchased the H&R block piece of mind, so if they do any mistakes they will pay up to $5500 to IRS. They got an arbitration provision, which I'm already opting out, with a cmrr letter, if I need to sue them it will be in federal not with some paid judge. They also wanted me to sign a  consent for automated calls, etc. which I refused. They didn't care and this morning I received an automated call for a survey on my land line, the only phone number I provided (and that I provide to anyone, but my employer friends and family). So I gonna include  remove any consent on that too, except if a H&R block live rep. calls me directly. Thanks for your inputs. As I said before my cancelation of debt numbers are easy since I just need to subtract the complaint amount with the settlement amount, and they are all legal docs signed and filled with the court, so  if any of the OC's says is different I can easily prove otherwise.

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