Form 1099-C: What You Need to Know
1 hour 40 minutes
Understand the exceptions and exclusions and the tax attributes on when to issue a 1099C.
Attorney Leahy examines Internal Revenue Information Returns, with a focus on 1099-C – Cancellation of debt. The 16th Amendment to the Constitution gave Congress “power to lay and collect taxes on incomes, from whatever source derived.” The IRS has found the cancellation of debt is, in fact, income and must be reported by the creditor and the taxpayer for income tax purposes. The canceled debt increases gross income unless there are exceptions or exclusions. This course will arm the practitioner with the background to understand the exceptions and apply the exclusions, along with the tax attributes on when to issue a 1099C, how to report a 1099C, and how to exclude reported 1099C income from the taxpayer’s assets. The course will include actual examples.
• You will be able to define what information returns are.
• You will be able to describe 1099-C reporting requirements.
• You will be able to discuss calculating 1099-C income.
• You will be able to explain reductions of tax attributes.