I filed for Chapter 7 bankruptcy last year. However, I didn’t receive a Form 1099-C and Form 882. How do I report the bankruptcy on my return?
Filing Chapter 7 bankruptcy creates a bankruptcy estate. A bankruptcy estate is a taxable entity separate from you. If you exclude cancelled debt from your gross income, you must apply it to the bankruptcy estate as a reduction in tax attributes.
The trustee of the bankruptcy estate decides which to do first:
- Reduce the basis of depreciable property.
- Reduce other tax attributes. Adding a Form 1099-C and Form 982, which are used as a Cancellation of Debt and Reduction of Tax Attributes, respectively, might affect your return. Contact the trustee of the bankruptcy estate or your Chapter 7 bankruptcy attorney to find out.
Nobody wants a letter from the IRS -- but you shouldn't ignore one. Here's what happens if you ignore an IRS audit, and how you should respond to the IRS.
Received an IRS CP21C notice? Learn more about notice CP21C and how to handle it with help from the tax experts at H&R Block.
The IRS will be sending your refund check by mail because it could not be direct deposited. Learn more about IRS notice CP53B from the experts at H&R Block.
Learn about how the recent tax reform has suspended moving expense deductions for most taxpayers starting in 2018. The tax experts at H&R Block explain.