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en.wikipedia.org/wiki/Cancellation_of_Debt_(COD)_Income

Taxpayers in the United States may have tax consequences when debt is cancelled. This is commonly known as COD (Cancellation of Debt) Income. According to the Internal Revenue Code, the discharge of indebtedness must be included in a taxpayer's gross income. There are exceptions to this rule, however, so a ...

www.irs.gov/taxtopics/tc431

Sep 21, 2017 ... In general, if you have cancellation of debt income because your debt is canceled, forgiven, or discharged for less than the amount you must pay, the amount of the canceled debt is taxable and you must report the canceled debt on your tax return for the year the cancellation occurs. The canceled debt isn't ...

www.irs.gov/newsroom/home-foreclosure-and-debt-cancellation

Oct 1, 2017 ... When that obligation is subsequently forgiven, the amount you received as loan proceeds is reportable as income because you no longer have an obligation to repay the lender. The lender is usually required to report the amount of the canceled debt to you and the IRS on a Form 1099-C, Cancellation of ...

taxpayeradvocate.irs.gov/get-help/cancellation-of-debt

Jun 21, 2017 ... You must report the canceled debt (one that doesn't qualify for an exception or exclusion from gross income) on your income tax return whether or not you receive a IRS Form 1099-C. Cancellation of Debt is a complex topic — after you review this page, you might want to discuss your particular situation with ...

turbotax.intuit.com/tax-tips/debt/when-to-use-tax-form-1099-c-for-cancellation-of-debt/L24iT0a3S

In most situations, if you receive a Form 1099-C from a lender after negotiating a debt cancellation with them, you'll have to report the amount on that form to the Internal Revenue Service as taxable ... According to the IRS, nearly any debt you owe that is canceled, forgiven or discharged becomes taxable income to you.

www.irs.gov/pub/irs-pdf/p4681.pdf

Feb 1, 2017 ... applicable entity has reported an identifiable event to the IRS regarding a debt you owe. The identifiable event may be an actual cancellation of the debt or it may be an event the applicable entity is required, solely for purposes of report- ing to the IRS, to treat as a cancellation of debt. For information on the ...

www.creditcards.com/credit-card-news/six-exceptions-paying-tax-forgiven-debt-1282.php

1099-C TAX SURPRISE. If a debt is forgiven or canceled, the IRS requires lenders to issue a 1099-C tax form to the borrower to show the amount of debt not paid. The IRS then requires the borrower to report that amount on a tax return as income, and it's often an unpleasant surprise: 1099-C surprise: Tax follows canceled ...

www.creditcards.com/credit-card-news/forgiven-debt-1099C-income-tax-3513.php

Jan 25, 2017 ... Creditors and debt collectors that agree to accept at least $600 less than the original balance are required by law to file 1099-C forms with the IRS and to send debtors notices as well. The more than 6 million taxpayers a year who receive the forms must report that portion of forgiven debt as “income” on ...

blog.credit.com/2011/04/1099-c-in-the-mail-how-to-avoid-taxes-on-cancelled-debt-14927

Apr 20, 2011 ... According to the IRS, if a debt is canceled, forgiven or discharged, you must include the canceled amount in your gross income, and pay taxes on that .... about how your debt or other issues could be impacting your credit, you can check your credit each month using Credit.com's free Credit Report Card.