Do i have to file my 1099-c form even if i was a victim of a money scam ? which is why i now have the cancellation of debt form 1099-c

[JotikaT2]

Form 1099-C is typically issued if you have debt forgiven or cancelled and the amount exceeds $600.  

I have attached a link to the IRS Publication on Canceled Debts with more details on why you would receive this form and how to treat it.

Canceled Debt

Based upon the information in your question, it's a bit hard to decipher why you received the 1099-C.  Please comment if you can provide a bit more information on why you were issued this form.

[teylor-hawkins]

Last year I got scammed I thought I was working for some company they sent me a check but the check ended up being fake..so I was fighting with the bank about it trying to explain that I got scammed but the transaction already went through so they told me there was nothing they could do so that’s how I ended up getting the form because they wanted me to pay back the amount which was a lot of money number one and number 2 I got scammed so I wasn’t going to pay anything 

[DaveF1006]

Unfortunately, since the 1099C is issued, you will need to pay taxes on the forgiven amount but at least you do not need to pay back the full amount that the bank paid. There are exceptions and exclusions for not paying the tax on 1099 C, but being a scam victim is not one of them.  Please read this link that outline the exceptions and exclusions on income you don't have to pay taxes to.

[flores9879]

Same thing happened to me...sorry this happened to you. thanks for the question.

[flores9879]

Ok, well what if you have a court filing that shows you were a victim of the scammer and he was convicted for scamming you and many others?  In fact he went to prison for it?

[MaryK4]

Unfortunately, this may be a Casualty and Theft loss but these are no longer deductible. 

@flores9879

[Lynn007]

Same thing happened to me… did u get out of paying ?

[JillS56]

Unfortunately, you will need to pay taxes on the forgiven amount but at least you do not need to pay back the full amount.  There are exceptions and exclusions for not paying the tax on 1099 C, but being a scam victim is not one of them.  Please read this link that outlines the exceptions and exclusions on the income you don't have to pay taxes.

[Major567]

@JillS56 How about if the 1099-C are from fraudulent transactions with credit cards?

[TomK2023]

If you believe that you received a 1099-C in error, then contact your credit card company.

As described, your cancellation of debt doesn'tb meet the requirements as an exception to cancelation of debt income (as listed in the IRS topic below).

Unfortunately, this may be a Casualty and Theft loss but these are no longer deductible. 

IRS Topic No. 431 Canceled Debt – Is It Taxable or Not?

@Major597