client that her husband passed 2 years ago. this year she received a 1099c for a credit card he had. does she have to claim this on line 21 or not?
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Not her but
Not her form 1099c. Sounds like you need more info. Why would she claim it? Is she a co-signer on the debt? Was she authorized to use the credit card and was her debt?Originally posted by patrickwardrop View Post
Is it a "community property state"?
You can refer to TTB or IRS site to address your scenario.Last edited by TAXNJ; 04-27-2015, 12:36 PM.Always cite your source for support to defend your opinion -
If community state then the surviving spouse is still responsible for the debt, otherwise if the deceased spouse did not have an estate and the debt was only in the deceased person's name with no joint cardholder or guarantor the surviving spouse should send a copy of the 1099-C, a copy of the death certificate and a statement that the deceased spouse did not have any estate to IRS to cancel the notice.Originally posted by patrickwardrop View Post
I did this twice so far for taxpayer in MA and IRS cancelled the levy.Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDRComment
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In addition
In addition to ATSMAN's comments, you might consider asking the client to contact their attorney as far as the "window of opportunity" was to collect the debt, etc.Always cite your source for support to defend your opinionComment
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The question is, does she report on her tax return? No, she does not. The 1099-C means it has been written off (cancelled) with the company that had the debt. So the part about collection is moot. They don't care any more. And the IRS will not be looking for any COD reporting on a person who died 2 years ago. I would forget it unless his estate is still open.Comment
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