Re: Help, quick!!

Posted by LadynRed (199.91.33.254) on April 02, 2003 at 17:32:39:

In Reply to: Re: Help, quick!! posted by LadynRed on April 02, 2003 at 17:20:12:

Patti, I dug around on the IRS web site and didn't find any time limits for filing a 1099-C, except that they're usually filed when the debt is actually cancelled - in your case 10/00.

"When To File
Generally, file Form 1099-C for the year in which an identifiable event occurs.

When Is a Debt Canceled?
A debt is canceled on the date an identifiable event occurs. An identifiable event occurs when the debt is canceled:

2. Or extinguished when the statute of limitations for collecting the debt expires, or when the statutory period for filing a claim or beginning a deficiency judgment proceeding expires. ***Expiration of the statute of limitations is an identifiable event only when a debtor's affirmative statute of limitations defense is upheld in a final judgment or decision of a court and the appeal period has expired.***

6. Under an agreement between the creditor and the debtor to cancel the debt at less than full consideration if the last event necessary to cancel the debt has occurred.

Box 1. Date Canceled
Enter the date the debt was canceled. See When Is a Debt Canceled? on page AC-3."

Interesting note there on # 2- a 1099-C *could* be issued if you successfully use the SOL as your affirmative defense for an expired debt and you win (more or less).

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