I received a letter in the mail about a 1099-c form that needs to be filed, I don't understand. Last year in July I made an agrement with my mortgage compony to restructure my mortgage, they sent me a proposal that I agreed to and have still been in my home paying it, so after we restructured this to where I could afford it, they still want this money back, how can I do that? I restructured for a reason. What do I do?

1009-C may be for debt cancelled (forgiven) by the company. You will report this as income on your tax return. Read about debt cancellation, Your U.S. Tax Return: The U.S. Income Tax Topics 1 (http://taxipay.blogspot.com/2008/08/us-income-tax-topics-1.html)

I undestand all of that, what I don't get is why, why was I sent this. All I did was restructure my mortgage, by having to claim thism how is it helping me, I don't have $30,000 to pay, I barely get by day to day. I need to know what to do?

This you can only find out from the mortgage company.

If the 1099-C is for $30K, that doesn't mean you have to pay that. It means you add that to your taxable income and pay taxes on it as income. So, if you were int the 15% bracket, you would pay $4500.

You need to read the fine print of your agreement. When you restrucutred, was the FULL amount due on the mortgage included in the restrucutring or did they cut off $30K.

It never said anything about having to re-pay this amount, from what I am reading all they did was lower the interest rate for me and add on what I was behind to the end of my loan.

The mortgage compnay am I finding out has a lot of deceptive pracrices suits filed agfainst them, can they be doing this, they are called Litton Loan Serviceing

If they did that, then there is no reason you should have gotten a 1099-C I would write to them demanding them to send a corrected 1099-C. In the meantime I would file your return without the 1099-C but include a copy of the letter you send to them.

Ok that is what i will do, but will i get a refund this year if it is owed to me or will they come back and say something about the 1099-c form, i normally go to h7r block to have my taxes done

That I can't answer. It will depend on whether they accept that the 1099 was an error.

But going to a tax preparer will help. Bring the paperwork for the loan to the preparer show them that the balance of your mortgage was fully covered by the restructure and that there was no amount forgiven. The IRS is more likely to accept this if a third party reviewed the records then if you file yourself.