Discussion:IRS Notice- failure to report 1099c income
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| Revision as of 02:24, 20 February 2008 Death&Taxes (Talk | contribs) (File the form an) ← Previous diff |
Current revision TxSrv (Talk | contribs) (IRS would rather) |
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| {{ForumReplyPost|UserID=Death&Taxes|Date=20 February 2008|Text=File the form and a cover letter with the notice....like you would correct a Sch D when sales aren't reported.}} | {{ForumReplyPost|UserID=Death&Taxes|Date=20 February 2008|Text=File the form and a cover letter with the notice....like you would correct a Sch D when sales aren't reported.}} | ||
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| + | {{ForumReplyPost|UserID=TxSrv|Date=20 February 2008|Text=IRS would rather you did not amend a return in response to an enforcement inquiry. Makes disposition of the matter more expensive on their end.}} | ||
Current revision
Discussion Forum Index --> Basic Tax Questions --> IRS Notice- failure to report 1099c income
Discussion Forum Index --> Tax Questions --> IRS Notice- failure to report 1099c income
Yankeesfan1983 (talk|edits) said: | 20 February 2008 |
| A client of mine received a notice for not reporting cod income from various credit cards which were settled for less than the full amount. From my understanding, they would have needed to file form 982 to claim insolvency (they were) or claim the income. Neither was done, which is obviously why they got the notice. Would providing a detailed letter explaining the clients insolvency at the time of the cancellation be sufficient for the IRS to accept? I suppose the other option would be to amend the return, and include form 982, but this doesn't make sense logically because the return that was filed would be exactly the same as the amended return, only the amended return would include form 982. Can anyone help me out with this? Thanks! | |
Death&Taxes (talk|edits) said: | 20 February 2008 |
| File the form and a cover letter with the notice....like you would correct a Sch D when sales aren't reported. | |
| 20 February 2008 | |
| IRS would rather you did not amend a return in response to an enforcement inquiry. Makes disposition of the matter more expensive on their end. | |
