[CLBS] debt forgiveness tax question

[Catherine Dullea]

Dear Listmates:

I was under the impression that the feds had instituted a moratorium against
considering debt forgiveness as income for taxing purposes for the last few
years.  I filed a chapter 7 for some clients last year.  We listed a Chase
debt.  Evidently Chase charged off the debt and sent them a 1099 for the
year 2013.  Now the IRS wants $615 in taxes regarding the cancellation of
debt.  Any wisdom?

--Katie Dullea