Posted on
April 1, 2009
at
3:07 pm
i recieved a small sttlement.the attorneys say im responsible for taxes.My question is they are not sending me 1099 so do i need to file?how will goverment know?and how many years can i wait to file?also what is the min amount that i dont have to file?help please
Posted on
April 1, 2009
at
4:51 pm
You really should file even if you did not receive a 1099. If the government does find out, which it normally does, you can be charged interest and penalties on this amount if not filed properly. So if you received the settlement in 2008 you will need to file it by April 15th 2009 and if you received it in 2009 you will have to file by April 15th 2010. You should go to a tax preparer and tell them about your settlement and they will file in correctly with your tax return.
Posted on
February 12, 2010
at
5:41 am
I believe when you say settlement taxes you are referring to the tax implication of a forgiven debt
Posted on
February 12, 2010
at
5:46 am
I believe when you say settlement taxes you are referring to the tax implication of a forgiven debt I agree - according to the IRS if the debt settlement program saves you on any account with a balance greater than $600, you should report as an income. You will be issued a
1099-C by your creditors - however, if you feel that you're insolvent - if your debt amount is much higher than your assets - then you may file a Form
982 to be exempted.
