Form 982 and Reduction of Tax Attributes

[peggysioux]

If taxpayer filed bankruptcy, does a 982 need to be filed even if no 1099-C's were issued?

[peggysioux]

Form 982 and Reduction of Tax Attributes

Just bumping this up hoping to get some feedback.

Thanks!

Peggy Sioux

[kathyc2]

Isn't the purpose of 982 to exempt taxable income due to insolvency? Since debt discharged in bankruptcy is already non-taxable, what would be the point of filing 982?

[DaveinTexas]

Can't find much

I haven't found anything on the topic of filing a 982 if you file a BK and you don't receive a 1099-C. In my experience, a 1099-C isn't filed if a taxpayer files a BK to discharge the lender's debt (most often anyway, there are always exceptions).

I think I would liken this issue to not filing a Schedule D for the sale of your Primary Residence if it qualifies for the 121 exclusion because you didn't receive a 1099-S. But if you did receive a 1099-S, well then....