Spouse received a 1099-C for cancellation of 8,000 credit card debt in deceased husband's name and ssn. I can't find anything on IRS site that says spouse (my client) is responsible for her husband's debt. He died in 2011 and debt was cancelled in 2012, therefore, the 1099-C from Wells Fargo. Any help is appreciated. Thanks.
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Just found a similar thread but in a community property state and consensus was that surviving spouse not liable for deceased husband's 1099-C. NJ is no community property state but I'd appreciate anyone's thoughts on this anyway. Thanks. -
1099-C to deceased taxpayer
Might be an issue to the tp's estate and as to any property jointly held by TP and surviving spouse, such as reduction of basis or something.Friends double; family triple. Don't buy an audit for yourself. If someone has to go to jail make sure it is the client. Remember it is only taxes, nothing important.Comment
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If the deceased had income and a return would be required it would report there. The widow would have to file MFS to avoid reporting it on her return.In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.
Alexis de TocquevilleComment
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He died in 2011. His estate, very small, had no income in 2012. Wife files single in 2012.Comment
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I would say she is in the clear. The IRS can go after him if they want.In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.
Alexis de TocquevilleComment
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I agree. Thanks all.Comment
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