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

Cancellation of Debt (COD)

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 debt for issues other than qualified principle residence or nonbusiness credit card
  • Cancellation of debt for a principle residence that was used in a business or as rental property
  • Cancellation of debt when Form 1099-C, box 3 includes an amount for interest
  • Debt was canceled because the taxpayer filed bankruptcy or was insolvent immediately before the cancellation