Explore how the insolvency exception can benefit recipients of Form 1099-C in automotive remarketing, helping BHPH dealers support distressed customers. The News Media of the Pre-Owned Industry ...

You make the argument that you fit the insolvency exception to Internal Revenue Service (IRS) by completing a federal form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and ...

However, there are exceptions to this rule and, yes, one of those is insolvency. You must complete and file Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness, and file it with ...

The rules are complicated and Form 982 is required. Even if you are not in bankruptcy, if you are insolvent when your debt is discharged, there is no tax. Insolvency is a simple test meaning your ...

If this is your situation, you should read IRS Publication 4681, Canceled Debts, Insolvency. Also, attach a completed Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness to your ...