topic Assuming the Form 1099-C's tax year states 2016 and if sh... in Retirement tax questions

1099-C for deceased spouse

redtail58 — Sat, 01 Jun 2019 07:06:38 GMT

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.

Assuming the Form 1099-C's tax year states 2016 and if sh...

NicoleU — Sat, 01 Jun 2019 07:06:38 GMT

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.

Re: Assuming the Form 1099-C's tax year states 2016 and if sh...

640dsm2020 — Sat, 08 Feb 2020 14:27:39 GMT

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.

Re: 1099-C for deceased spouse

KrisD15 — Sat, 08 Feb 2020 20:23:03 GMT

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

Reference link

Re: Assuming the Form 1099-C's tax year states 2016 and if sh...

MZ26 — Tue, 15 Mar 2022 21:21:06 GMT

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

Re: Assuming the Form 1099-C's tax year states 2016 and if sh...

MarilynG1 — Tue, 15 Mar 2022 21:41:45 GMT

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.