Hello received a 1099-c after filing our 2008 taxes Will they hold our refund or what should we do. The amount on the 1099-c is 814.00. It was for settling a debt but we did not no we would get one of these forms.
Thank You

You need to file an amended return to include this 1099. I sugest you wait at least until Feb 17 to make sure that you don't get any more 1099's.

Yes, you have to file a admended return

The income should be added to your Adjusted Gross Income on the Form 1040X.

No self-employment tax is due, as this income would have been reported Line #21 on Form 1040 as "Other Income".

You WILL have to write a check to pay the additional tax. As long as you file the amendment by 15 April 2008, there will be no interest or penalties due.

Also, do not forget to amend the STATE tax return as well.