how long a bank or financial institution has to report a forgiven debt to the irs?

Question

how long a bank or financial institution has to report a forgiven debt to the irs?

Answer

There is no answer to your question. Some credit card companies or banks never issue a 1099c. Others do so. I cannot figure out any particular pattern as to why some creditors report and others don't.

Regardless of whether a debt is reported or not it can still be collected or resolved. If a 1099c has been issued and the debt is later settled, an amended 1040 may need filed if you paid tax on the amount written off. You have 3 years to file amended returns.

I suppose the problem arises if no 1099 is ever issued. You need to speak with your CPA as to whether you need to report the written off debt or not. I would not do so because there is always the possiblity that you can be sued on the debt, even after the statute of limitations has run and then you have to worry about amending your returns if the debt is later resolved.

Generally, a creditor or junk debt buyer has 4 years in PA to bring suit against you from the time that the debt was last paid, assuming that the debt was created in PA and you still live there. Different states have different statutes of limitations, although most things like credit cards and loans are between 4-6 years (unless its a mortgage debt).

If a 1099c is ever issued, you may be able to exclude all or part of the forgiven amount from your income using form 982. You will need a competent CPA to assist you in filling out the form as you have to complete a worksheet based on your assets and debts. The IRS has a lot of helpful information at their website - www.irs.gov. Look up IRS form 982, tax topic 431 and publication 4681. Take these materials to your CPA when you go to file your taxes.

I hope this helps.

I have a question to ask. I just got in the mail today an letter from the Department of Social Service/Child Support Enforcement. It is sayi...

Question

I have a question to ask. I just got in the mail today an letter from the Department of Social Service/Child Support Enforcement. It is saying this

Stacey Kuhar vs. John H Deane

To the person Summoned: The District Manager of this office commands you to Appear at 10:45 AM on 12/17/2013 at the above address to provide essential information for the establishment or enforcement of child support. Failure to appear will be considered contempt of this summons and actions including suspension or non-renewal of your driver's license may be taken by this division to gain your compliance.

This summons is issued by the Division of Child Support Enforcement, Department of Social Service, Commonwealth of Virginia, in accordance with authority granted under 6.2-1903F of the Code of Virginia

the following applies to you

An order for child support and a provision for health insurance will be entered. Enclosed is a financial statement that must be completed and bought with you on the day of your appearance. Include pay records, tax statements, divorce papers, and any other documents that will verify your financial situation, including the monthly cost you will incur to provide heath care coverage on your dependents if it is available to you though your employer or other group-related policy. YOU DO NOT NEED TO APPEAR IF YOU RETURN THE FINANCIAL STATEMENT AND THE REQUIRED DOCUMENTS AT LEAST 3 DAYS PRIOR TO THE APPEARANCE DATE INDICATED ABOVE.

If someone can please explain this to me because I don't know why she is doing this.

She is my son aunt that has custody of him right now became he would not go to school for me or his mother. so the judge gave custody to his aunt. the question I have also does my wife get on of this papers also because it does not say anything on my paper if she did or not. we are not living together so it might not show up like that.

Also If I have a prepaid credit card to send down to my son does that matter if I do that so that why I am showing that I am sending money to him so he can get things.

Also as far as I know he is not going to stay down there that long so I don't know why there are getting involve with this case. unless his aunt is asking for it to help out down there. I did get an message saying that I can send anything that I would like to them to help out so I would like to see if they are just getting things set up or will I have to start paying child support for him why he is down there.

I am going to try to get him back ASAP if I can this was an case that my son was in as a Child in need of service for not going to school.

thank you for taking this and looking forward on your answer on this matter

Answer

Why is she doing this, you inquire, i.e., your son's aunt seeking child support and heath insurance coverage for YOUR minor child whom the court has apparently awarded custody of and who is therefore entitled to receive this support under Virginia law?

The answer is simple becasue she has a valid order for custody and apparently both you as well as your wife are not meeting your respective support obligations under the referenced law and so therefore she has had to enlist the services of DCSE to assist her with theser matters.

And, you had better show up for your scheduled appointment at the District

office with the required financial inforamtion if you want to keep driving your

car and to avoidi other possible adverse actions that could be taken against

you for failing to comply with DCSE's lawful requests in this matter.

In my divorce my ex got the house and was given 6 months to take over the mortgage that's in my name. It's been over 3 years and she hasn't ...

Question

In my divorce my ex got the house and was given 6 months to take over the mortgage that's in my name. It's been over 3 years and she hasn't done it. Now she is letting the house go and moving in with her mom. What's my best course of action?

Answer

You may need to file a Motion for Contempt. In any event you need to hire an attorney to take yor ex back to court.

What is john legend's home town?

What is john legend's home town?
Springfield

My friend has asked me to pawn some items for him since he has lost his ID. If I were to pawn these items for him using my ID (he would also...

Question

My friend has asked me to pawn some items for him since he has lost his ID. If I were to pawn these items for him using my ID (he would also be at the pawn shop with me), and if the items turned out to later be recognized as stolen.. would that put me at fault if there was a police report filed and the item was found at the pawn shop?

Answer

Yes. Don't do it.

As a non custodial parent I pay child support and company health insurance, am I responsible for deductibles?

Question

As a non custodial parent I pay child support and company health insurance, am I responsible for deductibles?

Answer

Read your order. it should have a section detailing who pays for health care costs that are not covered by insurance. The typical order provides that the parents split these 50/50, but your order may be different.

Is this correct: If there are no specific provisions in the trust documents for a successor trustee to terminate a trust in California, the ...

Question

Is this correct: If there are no specific provisions in the trust documents for a successor trustee to terminate a trust in California, the successor trustee needs the agreement of all beneficiaries who have not been paid their inheritance from the trust. In other words, the successor trustee cannot dissolve the trust without consent from the unpaid beneficiaries.

Am I right that this is addressed in Calif Probate Code 15403?

15403 (a) Except as provided in subdivision (b), if all beneficiaries of an irrevocable trust consent, they may compel modification or termination of the trust upon petition to the court.

(b) If the continuance of the trust is necessary to carry out a material purpose of the trust, the trust cannot be modified or terminated unless the court, in its discretion, determines that the reason for doing so under the circumstances outweighs the interest in accomplishing a material purpose of the trust. Under this section the court does not have discretion to permit termination of a trust that is subject to a valid restraint on transfer of the beneficiary's interest as provided in Chapter 2 (commencing with Section 15300).

Answer

You are seeking a legal opinion, based upon a statute, without the writer's benefit of seeing all of the trust documents. You are strongly advised to seek the assistance of an estate planning attorney, and be prepared to pay for a written opinion, as what I believe you are seeking to accomplish, will have long term effects on several persons as setforth in the trust; an ounce of prevention is worth a pound of cure.