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    Yawnzmor's Avatar
    Yawnzmor Posts: 4, Reputation: 1
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    #1

    Jan 23, 2009, 08:46 PM
    deceased in 2006 and 1099-C for 2008
    Does a 2008 Federal 1040 income tax return have to be filed for a person who died in 2006 and in Jan. 2009, received a 2008 year 1099-C (Cancellation of Debt) statement when 2006 was the last return filed on this person? The value of the canceled debt is $15,206.06. The deceased was insolvent at the time of death and at the time of the date of cancellation of debt the estate was also insolvent. There was no estate to probate.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Jan 23, 2009, 11:04 PM

    You may have to file last tax return of the deseased reporting 1099-C dept cancellation as income. Call IRS and find out.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Jan 24, 2009, 08:52 PM
    Depends on HOW MUCH the 1099-C was for.

    If it was for $8,950 or less, then no tax return is required because it is less than the combined amoubt of the personal exemption and standard deduction. That being the case, the IRS computer will NOT generate a tax return due notice.

    Also, I assume that, on the 2006 tax return, the IRS was notified that the tax filer was in fact deceased. If so, then the IRS will ignore the Form 1099-C, and you can as well.
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