Form 1099-C and Debt Settlement: The Tax Surprise That Catches Most People Off Guard
When you settle a debt for less than the full amount, the IRS treats the forgiven balance as taxable income. Creditors and debt buyers are generally required to issue an IRS Form 1099-C if they forgive $600 or more of your debt. Many consumers who settle debt while facing financial hardship qualify for the IRS … Read more