If you had a debt settled or “forgiven” in IRS lingo, and it was for more that $600, you most likely will receive a 1099-C. But, you may not be required to pay additional tax on the forgiven amount, but YOU MUST FILE THE CORRECT FORMS AND DOCUMENTATION.
Tag: insolvent
Do You Have to Pay Tax After Settlement?
A client called us the other day and asked, “Do you have to pay tax after settlement?”