<div dir="ltr"><div class="gmail_default" style="font-family:arial,sans-serif">It was a low income estate - but not insolvent. </div><div><div dir="ltr" class="gmail_signature" data-smartmail="gmail_signature"><div dir="ltr"><div dir="ltr"><p><b><span style="font-family:"Times New Roman",serif">Brent
Williams-Ruth</span></b><span style="font-family:"Times New Roman",serif"> (pronouns: he/him)<br>
<i>Attorney-At-Law</i></span></p><p><b><span style="font-family:"Times New Roman",serif">Law
Offices of Brent Williams-Ruth, </span></b><b><span style="font-family:"Times New Roman",serif"><font size="1">a division of BWR Consulting, PLLC</font></span></b><b><span style="font-family:"Times New Roman",serif"></span></b></p><p><b><span style="font-family:"Times New Roman",serif">Physical Address: 500 S 336th Street, Suite 214; Federal
Way, WA 98003</span></b><span style="font-family:"Times New Roman",serif"></span></p><p><b><span style="font-family:"Times New Roman",serif"><font color="#ff0000">**EFFECTIVE IMMEDIATELY**</font> All mail sent through the USPS should be sent to the following address: </span></b><b><span style="font-family:"Times New Roman",serif">PO BOX 3319; Federal Way, WA 98063 </span></b></p><p><span style="font-family:"Times New Roman",serif">Office/Scheduling
Phone:<span style="color:#004080"> </span><font color="#ff0000">(253) 285-7751</font></span></p><p><span style="font-family:"Times New Roman",serif">Direct:<font color="#ff0000"> (253) 285-7453</font></span></p><p>
</p><p><span style="font-family:"Times New Roman",serif"><a href="mailto:Brent@Williams-RuthLaw.com" target="_blank">e-mail</a> / <a href="http://www.williams-ruthlaw.com/" target="_blank">website</a> /</span><span style="font-size:9.5pt;font-family:"Times New Roman",serif"> </span><span style="font-family:"Times New Roman",serif"><a href="http://www.facebook.com/bwrlaw" target="_blank"><span style="font-size:9.5pt">facebook</span></a></span><span style="font-size:9.5pt;font-family:"Times New Roman",serif"> / </span><span style="font-size:12.0pt;font-family:"Times New Roman",serif"></span></p></div></div></div></div><br></div><br><div class="gmail_quote"><div dir="ltr" class="gmail_attr">On Tue, Jan 24, 2023 at 4:10 PM Diane J. Kiepe <<a href="mailto:DJKiepe@depdslaw.com">DJKiepe@depdslaw.com</a>> wrote:<br></div><blockquote class="gmail_quote" style="margin:0px 0px 0px 0.8ex;border-left:1px solid rgb(204,204,204);padding-left:1ex"><div class="msg8607613356341741420">
<div lang="EN-US" style="overflow-wrap: break-word;">
<div class="m_8607613356341741420WordSection1">
<p class="MsoNormal"><span style="font-size:12pt;font-family:"Times New Roman",serif">So I think there a couple legal arguments that I would feel comfortable making. The first was already discussed, that is there was no debt because WF had no legal right
to the money claimed owed. Second, I could, with a straight face, argue that one of the Section 108 exclusions apply – Code Section 108(a)(1)(B) states that there is no income if the taxpayer was insolvent when
<u>the discharge occurred</u>. Clearly taxpayer was insolvent if he/his estate had distributed and closed and owned nothing but the full $$$ of the WF 1099C.
<u></u><u></u></span></p>
<p class="MsoNormal"><span style="font-size:12pt;font-family:"Times New Roman",serif"><u></u> <u></u></span></p>
<p class="MsoNormal"><span style="font-size:12pt;font-family:"Times New Roman",serif">I can tell you that I personally experienced one in my own life for a significantly larger amount (long story) and I did not report it and never heard from the service –
this was during 2009.<u></u><u></u></span></p>
<p class="MsoNormal"><span style="font-size:12pt;font-family:"Times New Roman",serif"><u></u> <u></u></span></p>
<p class="MsoNormal"><i><span style="font-family:"Script MT Bold"">Diane J. Kiepe<u></u><u></u></span></i></p>
<p class="MsoNormal"><i><span style="font-family:"Script MT Bold""><u></u> <u></u></span></i></p>
<p class="MsoNormal">Diane J. Kiepe<u></u><u></u></p>
<p class="MsoNormal">Douglas Eden<u></u><u></u></p>
<p class="MsoNormal">717 W. Sprague Ave.<u></u><u></u></p>
<p class="MsoNormal">Suite 1500<u></u><u></u></p>
<p class="MsoNormal">Spokane, WA 99201<u></u><u></u></p>
<p class="MsoNormal"><a href="mailto:djkiepe@depdslaw.com" target="_blank"><span style="color:rgb(5,99,193)">djkiepe@depdslaw.com</span></a><u></u><u></u></p>
<p class="MsoNormal">509-455-5300<u></u><u></u></p>
<p class="MsoNormal"><span style="font-size:12pt;font-family:"Times New Roman",serif"><u></u> <u></u></span></p>
<div style="border-right:none;border-bottom:none;border-left:none;border-top:1pt solid rgb(225,225,225);padding:3pt 0in 0in">
<p class="MsoNormal"><b>From:</b> <a href="mailto:wsbapt-bounces@lists.wsbarppt.com" target="_blank">wsbapt-bounces@lists.wsbarppt.com</a> <<a href="mailto:wsbapt-bounces@lists.wsbarppt.com" target="_blank">wsbapt-bounces@lists.wsbarppt.com</a>>
<b>On Behalf Of </b>Brent Williams-Ruth<br>
<b>Sent:</b> Tuesday, January 24, 2023 3:48 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <<a href="mailto:wsbapt@lists.wsbarppt.com" target="_blank">wsbapt@lists.wsbarppt.com</a>><br>
<b>Subject:</b> Re: [WSBAPT] 1099-C Cancellation of Debt<u></u><u></u></p>
</div>
<p class="MsoNormal"><u></u> <u></u></p>
<div>
<div>
<p class="MsoNormal"><span style="font-family:Arial,sans-serif">This was a low income estate, there was no earned income during the administration and the Executor did not file an income tax return on the advice and counsel of a tax professional. (I make
it clear that I am NOT a tax attorney and do not give tax advice.....just enough knowledge to be dangerous). But even if they did, the tax year was 2021. <u></u><u></u></span></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:Arial,sans-serif"><u></u> <u></u></span></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:Arial,sans-serif">I worry that by simply being ignored this could turn into a failure to file, and lead to interest and penalties and problems for the former PR - though it was sent to the Decedent's name (not
his estate) care of me (personally) at my office address - not the Law Offices of Brent Williams-Ruth. Bob Q. Smith, in care of Brent Williams-Ruth. <u></u><u></u></span></p>
</div>
<div>
<div>
<div>
<div>
<p><b><span style="font-family:"Times New Roman",serif">Brent Williams-Ruth</span></b><span style="font-family:"Times New Roman",serif"> (pronouns: he/him)<br>
<i>Attorney-At-Law</i></span><u></u><u></u></p>
<p><b><span style="font-family:"Times New Roman",serif">Law Offices of Brent Williams-Ruth, </span></b><b><span style="font-size:7.5pt;font-family:"Times New Roman",serif">a division of BWR Consulting, PLLC</span></b><u></u><u></u></p>
<p><b><span style="font-family:"Times New Roman",serif">Physical Address: 500 S 336th Street, Suite 214; Federal Way, WA 98003</span></b><u></u><u></u></p>
<p><b><span style="font-family:"Times New Roman",serif;color:red">**EFFECTIVE IMMEDIATELY**</span></b><b><span style="font-family:"Times New Roman",serif"> All mail sent through the USPS should be sent to the following address: PO BOX 3319; Federal Way, WA
98063 </span></b><u></u><u></u></p>
<p><span style="font-family:"Times New Roman",serif">Office/Scheduling Phone:<span style="color:rgb(0,64,128)"> </span><span style="color:red">(253) 285-7751</span></span><u></u><u></u></p>
<p><span style="font-family:"Times New Roman",serif">Direct:<span style="color:red"> (253) 285-7453</span></span><u></u><u></u></p>
<p><span style="font-family:"Times New Roman",serif"><a href="mailto:Brent@Williams-RuthLaw.com" target="_blank">e-mail</a> / <a href="http://www.williams-ruthlaw.com/" target="_blank">website</a> /</span><span style="font-size:9.5pt;font-family:"Times New Roman",serif"> </span><span style="font-family:"Times New Roman",serif"><a href="http://www.facebook.com/bwrlaw" target="_blank"><span style="font-size:9.5pt">facebook</span></a></span><span style="font-size:9.5pt;font-family:"Times New Roman",serif"> / </span><u></u><u></u></p>
</div>
</div>
</div>
</div>
<p class="MsoNormal"><u></u> <u></u></p>
</div>
<p class="MsoNormal"><u></u> <u></u></p>
<div>
<div>
<p class="MsoNormal">On Tue, Jan 24, 2023 at 2:38 PM Claudia A Gowan <<a href="mailto:claudia@cagowanlaw.com" target="_blank">claudia@cagowanlaw.com</a>> wrote:<u></u><u></u></p>
</div>
<blockquote style="border-top:none;border-right:none;border-bottom:none;border-left:1pt solid rgb(204,204,204);padding:0in 0in 0in 6pt;margin-left:4.8pt;margin-right:0in">
<div>
<div>
<div>
<p class="MsoNormal">Brent, did the estate file a final form 1040 for the decedent?<u></u><u></u></p>
<p class="MsoNormal"> <u></u><u></u></p>
<p class="MsoNormal">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)?
<u></u><u></u></p>
<p class="MsoNormal"> <u></u><u></u></p>
<p class="MsoNormal">And of course, the PR is not going to want to file anything…<u></u><u></u></p>
<p class="MsoNormal"> <u></u><u></u></p>
<p class="MsoNormal">Excuse my ramblings but I would be scratching my head over what to do on this one.<u></u><u></u></p>
<p class="MsoNormal"> <u></u><u></u></p>
<p class="MsoNormal">Best, Claudia<u></u><u></u></p>
<p class="MsoNormal"><span style="color:rgb(31,56,100)"> </span><u></u><u></u></p>
<p class="MsoNormal"><span style="color:rgb(31,56,100)"> </span><u></u><u></u></p>
<p class="MsoNormal"><b><i><span lang="ES" style="font-size:12pt;font-family:ParkAvenue;color:rgb(31,56,100)">Claudia A. Gowan</span></i></b><u></u><u></u></p>
<p class="MsoNormal"><b><i><span lang="ES" style="color:rgb(31,56,100)"> </span></i></b><u></u><u></u></p>
<p class="MsoNormal">
<b><span lang="ES" style="color:rgb(31,73,125)">Claudia A. Gowan, PLLC</span></b><u></u><u></u></p>
<p class="MsoNormal"><b><span style="color:rgb(31,73,125)">2212 Queen Anne Avenue No., # 338 (Mailing only)</span></b><u></u><u></u></p>
<p class="MsoNormal"><b><span style="color:rgb(31,73,125)">Seattle, WA 98109</span></b><u></u><u></u></p>
<p class="MsoNormal"><b><span style="color:rgb(31,73,125)">(206) 443-2733 (T)</span></b><u></u><u></u></p>
<p class="MsoNormal"><b><span style="color:rgb(31,78,121)"><a href="mailto:claudia@cagowanlaw.com" target="_blank"><span style="color:rgb(31,78,121)">claudia@cagowanlaw.com</span></a>
</span></b><u></u><u></u></p>
<p class="MsoNormal"><span style="color:rgb(31,56,100)"> </span><u></u><u></u></p>
<p class="MsoNormal"><b><u><span style="color:rgb(31,78,121)"><a href="http://www.seattletrustsandestates.com/" target="_blank"><span style="color:rgb(5,99,193)">www.seattletrustsandestates.com</span></a></span></u></b><u></u><u></u></p>
<p class="MsoNormal"> <u></u><u></u></p>
<div style="border-right:none;border-bottom:none;border-left:none;border-top:1pt solid rgb(225,225,225);padding:3pt 0in 0in">
<p class="MsoNormal"><b>From:</b>
<a href="mailto:wsbapt-bounces@lists.wsbarppt.com" target="_blank">wsbapt-bounces@lists.wsbarppt.com</a> <<a href="mailto:wsbapt-bounces@lists.wsbarppt.com" target="_blank">wsbapt-bounces@lists.wsbarppt.com</a>>
<b>On Behalf Of </b>Brent Williams-Ruth<br>
<b>Sent:</b> Tuesday, January 24, 2023 2:08 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <<a href="mailto:WSBAPT@lists.wsbarppt.com" target="_blank">WSBAPT@lists.wsbarppt.com</a>><br>
<b>Subject:</b> [WSBAPT] 1099-C Cancellation of Debt<u></u><u></u></p>
</div>
<p class="MsoNormal"> <u></u><u></u></p>
<div>
<div>
<p class="MsoNormal"><span style="font-family:Arial,sans-serif">Mighty Brain Trust - </span><u></u><u></u></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:Arial,sans-serif"> </span><u></u><u></u></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:Arial,sans-serif">Today I received a 1099-C for the cancellation of debt from a Wells Fargo credit card. </span><u></u><u></u></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:Arial,sans-serif"> </span><u></u><u></u></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:Arial,sans-serif">This debt was never presented as a creditor claim. The amount is $627.47. </span><u></u><u></u></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:Arial,sans-serif"> </span><u></u><u></u></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:Arial,sans-serif">The estate closed under regular process - Decl of Completion - on January 20, 2022. The creditor period expired on August 14, 2021. </span><u></u><u></u></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:Arial,sans-serif"> </span><u></u><u></u></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:Arial,sans-serif">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. </span><u></u><u></u></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:Arial,sans-serif"> </span><u></u><u></u></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:Arial,sans-serif">Thank you. </span><u></u><u></u></p>
</div>
<div>
<div>
<div>
<div>
<p><b><span style="font-family:"Times New Roman",serif">Brent Williams-Ruth</span></b><span style="font-family:"Times New Roman",serif"> (pronouns: he/him)<br>
<i>Attorney-At-Law</i></span><u></u><u></u></p>
<p><b><span style="font-family:"Times New Roman",serif">Law Offices of Brent Williams-Ruth, </span></b><b><span style="font-size:7.5pt;font-family:"Times New Roman",serif">a division of BWR Consulting, PLLC</span></b><u></u><u></u></p>
<p><b><span style="font-family:"Times New Roman",serif">Physical Address: 500 S 336th Street, Suite 214; Federal Way, WA 98003</span></b><u></u><u></u></p>
<p><b><span style="font-family:"Times New Roman",serif;color:red">**EFFECTIVE IMMEDIATELY**</span></b><b><span style="font-family:"Times New Roman",serif"> All mail sent through the USPS should be sent to the following address: PO BOX 3319; Federal Way, WA
98063 </span></b><u></u><u></u></p>
<p><span style="font-family:"Times New Roman",serif">Office/Scheduling Phone:<span style="color:rgb(0,64,128)"> </span><span style="color:red">(253) 285-7751</span></span><u></u><u></u></p>
<p><span style="font-family:"Times New Roman",serif">Direct:<span style="color:red"> (253) 285-7453</span></span><u></u><u></u></p>
<p><span style="font-family:"Times New Roman",serif"><a href="mailto:Brent@Williams-RuthLaw.com" target="_blank">e-mail</a> / <a href="http://www.williams-ruthlaw.com/" target="_blank">website</a> /</span><span style="font-size:9.5pt;font-family:"Times New Roman",serif"> </span><span style="font-family:"Times New Roman",serif"><a href="http://www.facebook.com/bwrlaw" target="_blank"><span style="font-size:9.5pt">facebook</span></a></span><span style="font-size:9.5pt;font-family:"Times New Roman",serif"> / </span><u></u><u></u></p>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
<p class="MsoNormal">***Disclaimer: Please note that RPPT listserv participation is not restricted to practicing attorneys and may include non-practicing attorneys, law students, professionals working in related fields, and others.***<br>
_______________________________________________<br>
WSBAPT mailing list<br>
<a href="mailto:WSBAPT@lists.wsbarppt.com" target="_blank">WSBAPT@lists.wsbarppt.com</a><br>
<a href="http://mailman.fsr.com/mailman/listinfo/wsbapt" target="_blank">http://mailman.fsr.com/mailman/listinfo/wsbapt</a><u></u><u></u></p>
</div>
</blockquote>
</div>
</div>
</div>
***Disclaimer: Please note that RPPT listserv participation is not restricted to practicing attorneys and may include non-practicing attorneys, law students, professionals working in related fields, and others.***<br>
_______________________________________________<br>
WSBAPT mailing list<br>
<a href="mailto:WSBAPT@lists.wsbarppt.com" target="_blank">WSBAPT@lists.wsbarppt.com</a><br>
<a href="http://mailman.fsr.com/mailman/listinfo/wsbapt" rel="noreferrer" target="_blank">http://mailman.fsr.com/mailman/listinfo/wsbapt</a></div></blockquote></div>