Did you receive the most feared tax form this year?

It may not be the most feared but according to a Credit.com article, it can take you from overjoyed refund to tearful amount owed if you received it this year.  IRS 1099-C is the form used by creditors when they forgive debts of $600 or more.  The creditor is required to file a 1099-C with the IRS and the taxpayer is required to report the amount as income on their tax returns (with very few exceptions).  Instead of panicking, you should first determine if you qualify for an exemption.

For more details about how to handle a 1099-C read, “The tax form everyone fears.”