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Form 982 and Reduction of Tax Attributes

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    Form 982 and Reduction of Tax Attributes

    If taxpayer filed bankruptcy, does a 982 need to be filed even if no 1099-C's were issued?

    #2
    Form 982 and Reduction of Tax Attributes

    Just bumping this up hoping to get some feedback.

    Thanks!

    Peggy Sioux

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      #3
      Isn't the purpose of 982 to exempt taxable income due to insolvency? Since debt discharged in bankruptcy is already non-taxable, what would be the point of filing 982?

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        #4
        Can't find much

        I haven't found anything on the topic of filing a 982 if you file a BK and you don't receive a 1099-C. In my experience, a 1099-C isn't filed if a taxpayer files a BK to discharge the lender's debt (most often anyway, there are always exceptions).

        I think I would liken this issue to not filing a Schedule D for the sale of your Primary Residence if it qualifies for the 121 exclusion because you didn't receive a 1099-S. But if you did receive a 1099-S, well then....
        Circular 230 Disclosure:

        Don't even think about using the information in this message!

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