Client received 1099-C for 2010 in Jan 2012

[AZ-Tax]

Looks like a credit card debt cancellation since there is an accout # listed in the "debt description" box 4. Also, 6 "bankruptcy" box is checked. My past experience and research tells me my client will receive a letter from the IRS stating the taxes due on the "amt of debt cancelled" therefore my client will probaby need to amend his 2010 tax return to include form 982 and prove insolvency. Does this sound correct?

[taxea]

I wouldn't wait for the IRS letter. Do the amended now if it applies. Is this a 2011 or 2012 1099? You may have to report in the year of the 1099 rather than the 2010.

[taxmandan]

Looks like a credit card debt cancellation since there is an accout # listed in the "debt description" box 4. Also, 6 "bankruptcy" box is checked. My past experience and research tells me my client will receive a letter from the IRS stating the taxes due on the "amt of debt cancelled" therefore my client will probaby need to amend his 2010 tax return to include form 982 and prove insolvency. Does this sound correct?

If box 6 "bankruptcy" is checked that indicates it was discharged in bankruptcy and is not taxable. Check with the client and find out when they filed bankruptcy and if this was a discharged debt.