1099-C for closed business

[cathe]

My client received two 1099-C's from a business that filed its final return in '08 after filing bankruptcy for that business. The 1099-C's are 2009 cancellation of debt. One shows just the bankrupt business as debtor the other shows both the business and my client's name is on the second line in the debtor's box. I am not finding reference as to how to handle these for a defunked business. Thoughts?

Cathe

[cathe]

Sorry, business is 1120S.

Sorry, I did not mention that the business was an S Corp.

Cathe

[Davc]

Do you have a copy of the BK papers from the court? If not get them.

Did the TP guarantee either of the loans?

If so, has he been making any payments?

[cathe]

These are both unsecured credit cards. One only in the business name, the other in both business and taxpayer name. Just talked with client, he just closed the business, did NOT file bankruptcy.

Cathe