[CLBS] debt forgiveness tax question

[Catherine Dullea]

I heard it's been re-upped every year, including a few weeks ago.

-----Original Message-----
From: Randal French [mailto:RFrench at bauerandfrench.com] 
Sent: Thursday, March 12, 2015 9:27 AM
To: Bruce M. Perry; cldlaw at gmail.com; CLBS at admws.idaho.gov
Subject: RE: [CLBS] debt forgiveness tax question

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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