1099-C for deceased spouse

[redtail58]

My wife died in 2015.  A few months later, a credit card company "forgave" the debt remaining on her credit card (sole owner) due to her death.  Yesterday, I received a 1099-C form (in my late wife's name) from that same credit card company.  What do I do with this form?  Thank you.

[NicoleU · Accepted solution]

Assuming the Form 1099-C's tax year states 2016 and if she had an estate established, then the estate would be responsible for paying the tax on the income. In the absence of an estate, then you have nothing to report.

[640dsm2020]

I am looking for some documentation that the 1099-C income does not have to be reported.

The one I received is from 2019 for a taxpayer who passed away in 2017.  The final return was

filed then and there was no estate.  The closest I have found is that it is not taxable if the taxpayer

is insolvent.  

[KrisD15]

If the debt was forgiven, it is assumed the person had been found to be insolvent.

Reference link

[MZ26]

what if the deceased left an IRA to an heir? Can the IRS put a lien on it?

[MarilynG1]

If a deceased person owes back taxes, the IRS may be able to force the beneficiary to liquidate the IRA and pay the back taxes.

However, it may be to the beneficiary's benefit to work with the IRS on the matter before that occurs. 

Click this link for more info on IRS Levies.