The American economy is hurting and taxpayers are suffering. People are walking away from their homes and credit card debt. When creditors write off a debt, they are required by law to issue the taxpayer/debtor a Form 1099-C, Cancellation of Debt. According to Internal Revenue Code section 61, income is taxable from whatever source it is derived. This includes the discharge of debt. Because this course focuses on an area that affects thousands of taxpayers, this class is a must for practitioners who want to avoid the mistakes that are occurring in the application of this area of the law. Topics covered include the following: -Overview of code section 108 -Discussion of write-offs, foreclosures, short sales, and other discharges of debt -Preparation of Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness -Correcting Form 990 errors -Bankruptcy update - discharging IRS debt through inclusion in a bankruptcy estate