1099-C...how do i get a revised one (payment, taxes, financing)

[davehalo]

so i received a 1099-C for cancelling out debt.

i'd like to know if other people ran into any of these issues and how you resolved them:

(note: this is regarding a foreclosure and mortgage debt cancellation)

1- Box 7 FMV is less than the selling price of the house. My understanding is that the FMV should match the selling price if the property has sold

2- FMV plus the Box 2 discharged debt total more than what my original mortgage with the lender was

3- FMV plus Box 2 are $10k larger than the payoff of the month i 1st missed my 1st payment (note, lender states this amount is for attorneys fees, marketing the property, etc)

Questions:
can they do item 3?

I would like a revised. statement How can i get a revised statement? or how can i explain to the IRS if I disagree with whats reported on the 1099-C?

[davehalo]

all right it's been almost a week....and no replies.

so would it be a good assumption to make that over the past 4 years not a single person has had a problem with dollar amounts shown on a 1099-C and tried to get it corrected. as a follow-up:



I looked (again) at the IRS instructions for 1099-C...

I did follow the instructions for Box 2 and contacted my former lender. The response is what I expected.

"the info we provided is accurate"

i asked why there was/is a discrepancy in the FMV+box 2 ($388k) versus what I had owed ($378k). I was informed that the $10k difference is attorney fees, fines, etc.

Regarding instructions for Box 7, the term "generally" probably means the lender's FMV of $255k will remain even though the house sold for $256,500. i know, it's only $1500 but....

I have a 2nd valued at $6785 and in refinancing from Countrywide to SDCCU, $20k was taken out. $15k went back into the house and $5k went towards the ex-wife's debt.

so what i am really attempting to do here is (1) try and get what I think is an accurate document so that I can (2) file my taxes correctly

Yes, I am meeting with a CPA next week.

I am interested in whether someone else has dealt with this over the past few years and what the outcome was. Did you consult with a CPA and/or an attorney? If yes on the latter, what type of attorney? Not all tax and/or real estate attorneys are the same....

[davehalo]

so based on the lack of response should I just assume that (1) no one has ever had this issue during the real estate crunch and/or (2) that it's perfectly allowable (i.e. legal as well) for a lender to add in their FC costs, late charges, etc as part of the discharged debt?

if anyone has filled out IRS form 982, then you begin to realize why having accurate numbers is important.