Disabled Veteran Sues Bank Of America Over Erroneous Form 1099-C
The worst thing you can do if you receive a 1099-C is to ignore it. You can, of course, simply report the income and pay the tax. If you are in bankruptcy or insolvent, you can use Form 982 to exclude some or all of the income. I have not found authority about what to do if you receive one that is wrong and you can’t get the creditor to reissue. I think most practitioners would put the amount on your Form 1040 and then make another entry to back it out. There is a really good chance that that will work on a practical basis. Most of the case law about people with debt discharge income involves people who took the ignore route.
Was Kent Hovind 2006 Structuring Indictment Flawed?
I have written elsewhere that I believe that Kent Hovind is not under scrutiny for his religious beliefs. It is more likely for his association with tax protest like activity even though he claims to not be a tax protester himself. There is little doubt that if he had run his ministry in compliance with tax laws as they are commonly understood by what I would call the reality based community, IRS CID would not have come within miles of him. Nonetheless, in his fairly constant protest that he got a raw deal on the structuring, he may be on to something, perhaps once more illustrating the principle that even a stopped clock is right twice a day.
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Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.