here'a a new twist on 1099C

[schirallicpa]

Last year my client recieved a 1099C from Bank of America.  He had been paying a third party that did not forward the money to Bank of America - so we had some issues to deal with last year.

This year he receives a cash settlement from the 3rd party after Bank of America refused to accept the money. 

I don't think this is taxable income.  

[Lee B]

15 minutes ago, schirallicpa said:

Last year my client recieved a 1099C from Bank of America.  He had been paying a third party that did not forward the money to Bank of America . . . .  .

 How did he even receive a 1099 C? There must be more to this story?

[schirallicpa]

The 3rd party was supposed to pay to Bank of America for him, but the debt was still with BOA.  

[Lee B]

NEI

[Pacun]

The money received is not taxable but he never paid the debt to bank of america. The 1099C is taxable.

[Pacun]

I think I miss read the post... is "last year" 2019?

If you already dealt with the 1099C, you don't have to do anything else this year.