Had a ch 7 bankruptcy filed 12/14 and discharged 4/15. there were multiple properties (different banks) that were included in the bankruptcy. I have received multiple 1099-c with codes showing “by agreement” and another that says “foreclosure agreement”. however we were never foreclosed and the properties were included in the bankruptcy and discharged.
NOW, they are saying on these forms that we are having pay the tax on the discharged debt??? How can this be when the US government discharged all the debt??
HOW do we file taxes with these 1099-c forms with incorrect codes? we have yet to file 2015 taxes as we have been fighting with the bank to reissue the tax forms…
Is there ANYTHING we can do?
No worries. Just file a form 982 for the year your bankruptcy was discharged.
Your tax professional who is assisting you with your taxes should know how to do this.