re: I recieved a 1099-C in the mail today. What exactly does it do?(Posted by Poodlebrain on 1/28/13 at 1:14 am to Modern)
You benefitted from the cancellation of debt, and income is imputed to you to the extent of that benefit. There are exceptions that allow taxpayers to exclude the income. You really need to sit down with a CPA or tax attorney to discuss the implications of the 1099-C, and how it should be reported on your tax returns.