[CLBS] debt forgiveness tax question

[Bruce M. Perry]

It is not taxable but your client should file Form 982 with their tax
return.

Bruce M. Perry

Integra Law Group 

950 W. Bannock, 11th Floor
PO Box 1870
Boise, ID 83701

T/   208.386.9000
C/   208.867.9000
F/   208.386.9900

integralawgroup.com

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-----Original Message-----
From: CLBS [mailto:clbs-bounces at admws.idaho.gov] On Behalf Of Catherine
Dullea
Sent: Thursday, March 12, 2015 10:16 AM
To: CLBS at admws.idaho.gov
Subject: [CLBS] debt forgiveness tax question

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

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