Criteria for VITA/TCE Program
You may assist taxpayers who meet the following requirements for excluding canceled principal residence debt from income:
If the taxpayers do not meet these requirements, they may still qualify for the exclusion. However, the issues may be complex and beyond the scope of VITA/TCE. Such taxpayers should be referred to a professional tax preparer.
Use Publication 4731, Screening Sheet for Form 1099-C, Cancellation of Debt, to help you identify those taxpayers who can be assisted at a VITA/TCE site. A copy of the screening sheet can be found in the Volunteer Resource Guide (Tab D).
Click here to view Publication 4731, Screening Sheet for Form 1099-C, Cancellation of Debt, which provides step-by-step guidance for the volunteer tax-return preparer to determine if the cancellation of debt is within scope. Part I addresses home mortgage loans.