Debt Cancellation

🚨According to the IRS, nearly any debt you owe that is canceled, forgiven or discharged becomes taxable income to you. You'll receive a Form 1099-C, "Cancellation of Debt," from the lender that forgave the debt. Common examples of when you might receive a Form 1099-C include repossession, foreclosure, return of property to a lender, abandonment of property, or the modification of a loan on your principal residence. 📍If you’ve received a 1099-C, don’t ignore it. The IRS is looking to have that income included on your tax return, unless there is an exception or exclusion. If you need any assistance, via tax filing or credit repair, allow us to serve you! 😊💲