[CLBS] debt forgiveness tax question

[Randal French]

Did the exclusion from taxable income for debt forgiveness end at the end of 2013?  I was thinking there was a sunset clause on that law.

-----Original Message-----
From: CLBS [mailto:clbs-bounces at admws.idaho.gov] On Behalf Of Bruce M. Perry
Sent: Thursday, March 12, 2015 10:22 AM
To: cldlaw at gmail.com; CLBS at admws.idaho.gov
Subject: Re: [CLBS] debt forgiveness tax question



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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