A volunteer with Cancellation of Debt certification is working with Robert. The volunteer asks Robert if he underwent foreclosure or had to give up his home during the tax year. Robert confirmed that he did, and produced Form 1099-A. The volunteer asked Robert if he had received Form 1099-C, and Robert replied that he did not. Examining the form, the volunteer noted the balance of principal outstanding was $234,000. What should the volunteer do next?
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Ask the questions on Publication 4731-A, Screening Sheet for Foreclosures/Abandonments and Cancellation of Debt |
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Ask enough probing questions to determine if Robert had a gain or loss on the foreclosure |
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Refer Robert to a professional tax preparer |
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Complete Form 982 |
