Cancellation of Debt Income Problems
When you settle credit cards, bank debt, or other loans, the IRS may treat the forgiven amount as taxable income. Form 1099-C is how they hear about it.
Cancellation of debt (COD) income surprises people and businesses every year. Lenders report it. The tax can be large. Several exclusions can reduce, delay, or eliminate the tax if they apply and if you claim them correctly.
- Review of 1099-C and related reporting
- Exclusion analysis (insolvency and other grounds where available)
- Return positions that protect the exclusion
An experienced tax lawyer reviews whether an exclusion fits your facts and how to keep from losing it through a wrong filing or a missed election.
Clifford Ribner went through all of the paperwork I received and several other sources. He carefully reviewed the details and ultimately noticed the most important thing. I'm not personally liable. I've saved more money than I could have paid in a lifetime.
Related tax services
Also see Tulsa Tax Attorney and Oklahoma Tax Attorney.