[WSBAPT] 1099-C Cancellation of Debt

[Claudia A Gowan]

Brent, did the estate file a final form 1040 for the decedent?

This is such a pain because technically, if Wells Fargo sent the 1099 to the IRS, the decedent had income in that amount – which is over the required amount for filing an income tax return amount. But the estate is long closed and the form 1040, if one was filed, has probably long since been processed. Plus of course, the debt was discharged in a year well after death, which raises another series of questions about any filing requirement, e.g. if you were to file a tax return for the 627.00, for whom would it be filed, the estate for the calendar year of the discharged debt or would it be for the decedent who incurred the debt (all when the PR has already been discharged)?

And of course, the PR is not going to want to file anything…

Excuse my ramblings but I would be scratching my head over what to do on this one.

Best, Claudia


Claudia A. Gowan

Claudia A. Gowan, PLLC
2212 Queen Anne Avenue No., # 338 (Mailing only)
Seattle, WA 98109
(206) 443-2733 (T)
claudia at cagowanlaw.com<mailto:claudia at cagowanlaw.com>

www.seattletrustsandestates.com<http://www.seattletrustsandestates.com/>

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Brent Williams-Ruth
Sent: Tuesday, January 24, 2023 2:08 PM
To: WSBA Probate & Trust Listserv <WSBAPT at lists.wsbarppt.com>
Subject: [WSBAPT] 1099-C Cancellation of Debt

Mighty Brain Trust -

Today I received a 1099-C for the cancellation of debt from a Wells Fargo credit card.

This debt was never presented as a creditor claim. The amount is $627.47.

The estate closed under regular process - Decl of Completion - on January 20, 2022. The creditor period expired on August 14, 2021.

Other than providing this information to the former Executor - I am open to guidance as to how to respond. It was reported as discharged on July 2, 2022. More than a year and a half after death.

Thank you.

Brent Williams-Ruth (pronouns: he/him)
Attorney-At-Law

Law Offices of Brent Williams-Ruth, a division of BWR Consulting, PLLC

Physical Address: 500 S 336th Street, Suite 214; Federal Way, WA 98003

**EFFECTIVE IMMEDIATELY** All mail sent through the USPS should be sent to the following address: PO BOX 3319; Federal Way, WA 98063

Office/Scheduling Phone: (253) 285-7751

Direct: (253) 285-7453

e-mail<mailto:Brent at Williams-RuthLaw.com> / website<http://www.williams-ruthlaw.com/> / facebook<http://www.facebook.com/bwrlaw> /
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20230124/fab5e1ce/attachment.html>