Multiple Canceled Debts

[taxjungle]

Hello,

Client couple received 3 Forms 1099-C. One for wife and 2 for husband. I had them fill out 3 Insolvency Worksheets for each date immediately before
each canceled debt date.

Please, how do I report 3 1099-Cs on their MFJ tax return. Do I need to use three different Forms 982 for each 1099-C or only one Form 982?

Any advice would be greatly appreciated. Thank you.

[appelman]

Only one 982

However, you may want to itemize the 1099-C's on the detail to line 21 (if you have room) and back them out with a negative entry referencing the 982.

Hello,

Client couple received 3 Forms 1099-C. One for wife and 2 for husband. I had them fill out 3 Insolvency Worksheets for each date immediately before
each canceled debt date.

Please, how do I report 3 1099-Cs on their MFJ tax return. Do I need to use three different Forms 982 for each 1099-C or only one Form 982?

Any advice would be greatly appreciated. Thank you.

[AZ-Tax]

IRS auditing Insolvency Worksheet?

Hello,
Client couple received 3 Forms 1099-C. One for wife and 2 for husband. I had them fill out 3 Insolvency Worksheets for each date immediately before
each canceled debt date. Please, how do I report 3 1099-Cs on their MFJ tax return. Do I need to use three different Forms 982 for each 1099-C or only one Form 982?
Any advice would be greatly appreciated. Thank you.

I did quite a few of these over the years and so far no audits. Has anyone had their clients worksheet audited by the IRS?

[KathMorgan]

Audit of Form 982

I'm actually working an audit on a 982 right now. Unfortunately the client did their own original and are just now getting to me. The problem I ran into and the reason for the audit is that they claimed one figure on the 982 as insolvent and the IRS only had a 1099C for a much smaller amount. They are still insolvent either way but the discrepancy generated an AUR because the 982 did not match the 1099C. A relatively simple fix if the client had not waited until the Notice of difiency was issued to see me.