Patrick Michael Posted March 16, 2019 Report Posted March 16, 2019 Client passed away in 2017 and received 1099 -C in 2018. I am preparing the 1041. The estate is insolvent. I spoke with support who said there is no 982 screen to indicate the debt is not taxable due to insolvency. Any suggestions on how to report so that the IRS knows that income was reported but is not taxable? Thanks. Quote
Max W Posted March 16, 2019 Report Posted March 16, 2019 One way might be to file a paper return and attach form 982 along with a statement of assets and liabilities showing insolvency. Quote
Patrick Michael Posted March 16, 2019 Author Report Posted March 16, 2019 Thanks Max. Paper file it is! Quote
Catherine Posted March 17, 2019 Report Posted March 17, 2019 Attach a pdf to the return! That's an easy fix. Quote
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