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Don't Be Misled By a 1099-C
Don't Accept a 1099-C on its Face — It May Not Be Correct or Valid.
As banks and government programs seek to retire large pools of unsecured or undersecured indebtedness, inaccurate 1099-C cancellation of debt income has become a burgeoning problem for consumers and small business owners. Millions of borrowers are now finding their taxable income unpredictably and significantly increased as the result of the issuance of 1099-C forms for events such as:
- Unsecured debt settlement
- Short sales
- Deeds-in-lieu of foreclosure
At the Law Offices of Neil Crane, LLC, we can help you learn the truth the 1099-C. Our attorneys have decades of experience helping clients throughout Connecticut get the relief they need from taxes and other types of debts. Contact us to schedule your free initial consultation.
Don't Be Misled — A 1099-C Cancellation Notice is Not a Legal Release
Instead, it may just be an invalid tax bill. Without a true release, a 1099 is just a tax bill without debt relief or forgiveness. It has become critical that the attending professional dig in behind the 1099 and obtain backup to assure a legal release of the debt or refute the tax liability, as may be necessary.
While the IRS is considering implementing measures to assure accurate creditor reporting requirements are done, those measures are not yet in place. Don't accept a 1099-C on its face — It may not be correct or valid. It is imperative to obtain proof that the debt has been truly and legally eliminated.
In addition to actions against the issuing creditor, there are bankruptcy options available:
- Chapter 7 bankruptcy provides for full discharge of certain older tax debts.
- Chapter 13 allows for the discharge or adjustment of all types of federal, state or local taxes, without exception.
- Chapter 20, which is a Chapter 7 filing following by a Chapter 13 filing, can sometimes provide the best form of relief available under the new bankruptcy system.
Contact a Tax Debt Relief Lawyer About 1099-C
Learn the facts about 1099-C and what it can mean for you by contacting the Law Offices of Neal Crane, LLC. For a free consultation, call us at 203-230-2233, call us toll free at 1-888-249-3027 or contact us online. We have office locations in Hamden, Bridgeport, Ridgefield, Waterbury and Rocky Hill, Connecticut.
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We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.