DMarkM1
Expert Alumni

Deductions & credits

Here is a great article on the subject of the form 1099-C and bankruptcy and taxes.  In any case you do need to contact the IRS.  The two scenarios are:

 

1.  If the 1099-C is because of/part of the bankruptcy, you will complete a form 982 to file with your return as there will be no income as there would be no debt.

2.  If you got the 1099-C and then filed for bankruptcy, you contact the IRS due to insolvency.  

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"