Just received a 1099C from a bank on an account that was charged off and is past SOL. Does including the Cancellation of Debt amount on my 1040 return validate the debt? Should I dispute with validation and not include the amount as Other Income on my tax return? Thoughts?
Don't mess with the IRS. Those 1099C rules are a tough cookie. You have no right to "request validation" of an OC. I would seek the advice of a tax attorney before I omitted any information from a return. You don't want a letter from the IRS
