Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Out of Scope

Out of Scope Situations for VITA/TCE

The following is out of scope for this course. While this list may not be all inclusive, it is provided for your awareness only.

  • Cancellation of credit card debt is included in the Other Income lesson of Publication 4491 for Advanced certification.
  • Cancellation of debt for issues other than "qualified principal residence indebtedness" or nonbusiness credit card debt
  • Cancellation of debt for a principle residence that was used in a business or as rental property
  • Cancellation of debt when Form 1099-C includes an amount for interest
  • Cancellation of debt was because the taxpayer filed bankruptcy or was insolvent immediately before the debt was canceled