1099-c received 2 years after death

[DixieEA]

Taxpayer died in 2010. Daughter filed final income tax return for mom. Estate income return not done because
no income. Daughter receives 2 1099-c for 2012 $14904 and $8514 that are in moms social security #.
Mom probably was insolvent at time of death. Does this go on estate return for 2012 and does daughter have
any tax consequence for 2012?

Thanks, DixieEA

[Burke]

See previous threads on these situations. 1099-C is for 2012. Mom died in 2010, and cannot filing an income tax return for 2012. Neither is the estate which is closed. Ignore.

[WhiteOleander]

See previous threads on these situations. 1099-C is for 2012. Mom died in 2010, and cannot filing an income tax return for 2012. Neither is the estate which is closed. Ignore.

I agree. Solvency is determined as of the date the debt is cancelled, not the date the t/p died. So, both the decedent and the decedent's estate were insolvent. If the daughter were to later hear from the IRS regarding this, (which is highly unlikely) she could show insolvency at that point.

[taxea]

If a return is not filed the IRS will, most likely, send a notice. I would file a return in 2012 including the insolvency form and a statement of facts.

[DixieEA]

1099-c

Thanks, Burke, Whiteoleander,and taxea, I think I probably file the return and show insolvency to prevent IRS
notice later on.


Thanks , DixieEA

[Burke]

If a return is not filed the IRS will, most likely, send a notice. I would file a return in 2012 including the insolvency form and a statement of facts.

I have seen a lot of these and in those circumstances where a CP2000 may be issued, notification that the TP is deceased (and when) is all that is necessary. Case closed and no further action occurs on the part of the IRS.

[taxea]

Burke if you file a return you won't have to deal with the aftermath.