The answer is no. The IRS allows you to split the calculation so that only the spouse named on the 1099-C has to demonstrate insolvency, based on the assets and debts held solely in that spouse’s name, and a pro-rated basis for assets and debts held jointly.
What assets are included in insolvency?
These include:
- Bank account balances (include cash)
- Real property.
- Cars and other vehicles.
- Computers.
- Household goods and furnishings, such as appliances, electronics, and furniture.
- Tools.
- Jewelry.
- Clothing.
How to attach Form 982 to your tax return?
Go to for instructions and the latest information. Form 982 (Rev. March 2018) Department of the Treasury Internal Revenue Service Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment) Attach this form to your income tax return. Go to
Do you have to file Form 982 with 1099-C?
That’s true even if the 1099-C doesn’t change your tax obligation, as you will want to get the Form 982 on record for documentation purposes. If you filed your original return using TaxAct, you can also file an amended return with TaxAct at no additional charge.
When did PRA issue Form 1099-C for Stewart?
On the other hand, IRS contended that Stewart’s debt was discharged in 2008 when PRA issued Form 1099-C. IRS noted that a decision by a creditor to discontinue collection activity may require that creditor to issue a Form 1099-C.
Can you substitute form 4852 for Form 1099-R?
The IRS will also send you a Form 4852, Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. (PDF) along with a letter containing instructions for you.
