The creditor, Bank of America, needs to issue a corrected 1099C showing that you do not owe the money.
If they refuse, you have two options:
1. You will file your return and not claim the 1099C. You will then receive an IRS letter stating that you owe taxes, penalties and interest on the money. You will have to convince the IRS that you already paid that amount on your 2016 return. If you have a good paper trail and evidence, like a phone call log, where you tried to correct the situation, that will help.
2. You would add it to your return again this year and pay taxes again.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
