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Level 1
posted Jan 29, 2025 2:21:06 PM

Insolvency help

I received a 1099-C in 2018 for 3k and change.  I was insolvent in w018. I filed Form 982. I received a notification 6 months later that I owed 3k + interest. I re-filed form 982, along with over 100+ pages of proof of insolvency. 2 years later I receive another notification of money owed. I call the IRS, they tell me I need to submit Form 982.  I do this, again, etc

 

its now 2025, and after 2+ years of receiving “we need more time” letters, I receive a new bill, with more interest and penalties.  

Am I doing something wrong? Is there a way to actually get hold of a human being at the IRS? Do I just keep submitting what I have?

0 4 1650
4 Replies
Level 15
Jan 29, 2025 2:26:02 PM

You should contact your local IRS office.  See this IRS website for local IRS offices - http://www.irs.gov/uac/Contact-Your-Local-IRS-Office-1 or call 1-844-545-5640 to set up an appointment

Level 15
Jan 29, 2025 2:31:02 PM

Or contact the Taxpayer Advocate.

https://www.irs.gov/taxpayer-advocate

 

It doesn't make sense for a start that you would owe $3000 in tax if your 1099-C income was just $3000.  Was there something else they adjusted?  If you can't make headway with the IRS you likely need a local professional to look over all your files and correspondence to figure out where you are at this point. 

Level 1
Jan 29, 2025 3:02:39 PM

3k is what I owed, the 1099c was for around 10k.  What I owe is just from the added 10k.  However, I was insolvent (by a lot).  I tried asking this question on Reddit Tax and they think the 1099 can follow you forever until you pay it…

Level 1
Jan 29, 2025 3:03:01 PM

I’ll try this, thanks