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 Publication 2019

4681 2019-2025 Form

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last few years many bad things have been happening in real estate you have foreclosures you have all kinds of short sales you have all kinds of things happening do you have people going into bankruptcy and you think well after I've done that or I've lost my home surely that's the end well the answer is it's not the end there are worse things that could happen because your friends at the IRS could show up and say oh by the way you owe a lot more watch this it's bad enough adding a home to foreclosure or to have your car repossessed or to be forced to file for bankruptcy but as awful as those things are your financial nightmare could get even worse when the IRS shows up and slaps you with a form 1099-C a 1099-C is a tax form that says that you actually received income when your debt was forgiven so on top of all the other bad news the IRS expects you to pay taxes on non-existent income turning a difficult financial situation into an impossible one

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