Solved: What do you do when the bank sends 1099C to both parties involved with a cancellation of debt for the same amount which doubles the forgiven debt?
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New Member

What do you do when the bank sends 1099C to both parties involved with a cancellation of debt for the same amount which doubles the forgiven debt?

There is one debt - two names on the loan but the bank has issued 2 1099C for the same debt?

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New Member

What do you do when the bank sends 1099C to both parties involved with a cancellation of debt for the same amount which doubles the forgiven debt?

The issuer is required to let both parties know abut the debt forgiveness, same as they do for  a married couple.  They cannot rely on one of you to tell the other.  It doesn't double the debt at all.  Either one of you can claim it or pay it.

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New Member

What do you do when the bank sends 1099C to both parties involved with a cancellation of debt for the same amount which doubles the forgiven debt?

The issuer is required to let both parties know abut the debt forgiveness, same as they do for  a married couple.  They cannot rely on one of you to tell the other.  It doesn't double the debt at all.  Either one of you can claim it or pay it.

View solution in original post

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