2007-01-02 10:02:35 · 5 answers · asked by Steve A 2 in Business & Finance ➔ Taxes ➔ United States
If the company sends a Form 1099-C for cancellation of federal indebtedness, you must report this as "other income" on your tax return and it is subject to social security and medicare taxes. The company will also send a copy to the IRS. If the amount shown on the 1099-C is not reported as income on your return, you will get a CP-2000 notice from thre IRS Automated Underreporter Department showing the proposed additional taxes that you may owe.
2007-01-02 18:24:17 · answer #1 · answered by ck10581 1 · 0⤊ 0⤋
Do you mean by "credit charge offs" that the credit card company wrote off the debt you owe them? If so, the credit card company should send you a 1099 reporting the amount they wrote off. You need to report this as income on your tax return.
2007-01-02 22:35:08 · answer #2 · answered by raindrop 4 · 0⤊ 0⤋
Only if the charge offs were reported to you on a 1099. Then you would need to report the amount of the charge off as income.
2007-01-02 18:07:51 · answer #3 · answered by jseah114 6 · 2⤊ 0⤋
Not sure what "credit charge offs" are...but the rule of thumb is that one reports only those moneys which are income (wages, gains, commissions, etc.) and taxable. Sorry cannot help you more....
2007-01-02 19:04:36 · answer #4 · answered by kalamity 3 · 0⤊ 0⤋
I'm not clear about your question, but I suggest that you research irs.gov for accurate answers to what may be an implied income issue. Good luck.
2007-01-02 18:06:44 · answer #5 · answered by kearneyconsulting 6 · 0⤊ 0⤋