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Financial Planning / Tax Strategies
|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.
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