Skylane
Level 11
Level 11
‎12-27-2022 08:49 AM

A client received a CP2000 for a non-identified 1099-C for TY2021. 

edit: this is cancellation of credit card debt

I think TY2021 had some special rules for cancellation of debt due to the pandemic. Can anyone point me in the right direction?

 

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qbteachmt
Level 15
‎12-27-2022 11:44 AM

Exceptions and exclusions (I'm not sure what you are trying to remember):

https://www.irs.gov/taxtopics/tc431

 

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Terry53029
Level 15
Level 15
‎12-27-2022 12:55 PM

The  Consolidated Appropriations Act, 2021 provided some relief. Don' believe credit card debt has any exceptions, but here is a link for the exceptions (not official) 

https://www.claconnect.com/en/resources/articles/2021/covid-19-debt-relief--without-a-tax-bite-later

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Skylane
Level 11
Level 11
‎12-27-2022 08:36 PM

Thanks @Terry53029 ,  that’s what I was looking for and agree there’s nothing there for cc debt….. we spoke in general terms and she’s going through the insolvency exercise but I’m not very hopeful…. I think she’s SOL.

If at first you don’t succeed…..find a workaround
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