Is Form 982 unnecessary for cancelled debt?
Unnecessary given that the potential income and tax bill resulting from this cancelled debt will be eliminated using Form 982. Taxpayers with cancelled debt scenarios should be wary of self-preparing their tax returns.
Where can I Find Form 982 for tax purposes?
Form 982 (Rev. March 2018) Department of the Treasury Internal Revenue Service . Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment) Attach this form to your income tax return. Go to . www.irs.gov/Form982. for instructions and the latest information. OMB No. 1545-0046. Attachment Sequence No. 94
What is a 1099-C cancellation of debt form?
If you received a 1099-C Cancellation of Debt form, it means that the creditor (the person or company to whom you owed money) has canceled or forgiven your debt. The creditor will file a 1099-C form that reports the amount of canceled debt to the Internal Revenue Service (IRS), and it is considered income.