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consideration is that it was unlikely as a matter of fact that
the bank would have to honor its obligation to the depositors.”);
Rivera v. Commissioner, T.C. Memo. 1993-609 (a settlement
agreement, a court order, and payment pursuant to the settlement
agreement together reasonably established an abandonment of debt,
not when payments recorded); Estate of Marcus v. Commissioner,
T.C. Memo. 1975-9 (decedent’s estate realized income in the year
of decedent’s death because the executors did not intend to
satisfy certain debts and the creditor did not intend to enforce
such claims). A deemed discharge of indebtedness occurred in
1999 when Discover ceased collection activities against
petitioners. Accordingly, we conclude that petitioners did not
receive discharge of indebtedness income from account 790 of
$8,637 in 2001.
3. Account 879
Mr. De Shon denies ownership of account 879. In contrast,
respondent contends that petitioners received discharge of
indebtedness income as reported on the Form 1099-C. We agree
with respondent.
Petitioners in fact received the Form 1099-C from Discover,
which was addressed to their current mailing address. Upon
receiving the Form 1099-C, we find it noteworthy that petitioners
did not contact Discover concerning this account, especially in
light of their contention that they did not maintain this
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