The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/so-one-final-time-around-just-to-make-sure-i-am-30571530.aspx

Subject:  Re: 1099-C Date:  3/3/2013  2:16 PM
Author:  Wradical Number:  117950 of 121567

So, one final time around just to make sure I am doing this correctly before pushing the button to send return off to the IRS.
The lender has entered incorrect numbers in at least 2 of the blocks on the 1099-C. There has been no response form the lender to requests for a corrected 1099-C.
At this point, I am simply entering the correct numbers into Turbo-Tax, attaching an explanation along with the Registered Mail tracking number and sending the return in. Any thoughts as to any other way to do this?

=================================
Alas, no. You have to report the transaction as accurately as possible, and if you develop a penpal relationship with IRS, so be it.

I was at a seminar on troubled debt transactions last December (I needed the CPE hours)and the instructor told us to remember one thing: " A 1099-C is always wrong! And 1099-A's aren't much better!"

In my prior experience, it seemed that 1099-Cs often come out years after the relevant transaction(s). I was surprised to learn that's maybe the rule instead of the exception. Sometimes lenders report debt forgiveness the year they scrub the loan from their books, instead of the year a debt reduction or short sale occurs. And it may be 5-10 years later.

I don't understand, what registered mail item you plan to send to IRS, or what that will accomplish? You may file the return by registered mail (generally certified-return receipt is preferable and cheaper.) You say you're using Turbo Tax. I'm not sure this item keeps you from e-filing, if you wanted to.

Bill
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us