- 2 - for the year in issue, and all Rule references are to the Tax Court Rules of Practice and Procedure. Respondent determined a deficiency of $2,609 in petitioner’s Federal income tax for 2002. The issue for decision is whether petitioner received $11,628 of income from cancellation of indebtedness owed to General Motors Acceptance Corp. (GMAC). Background The undisputed facts, as stated by petitioner, are as follows: The Petitioner incurred an obligation to General Motors Acceptance Corporation (hereinafter “GMAC”) in the original amount of $14,435.99, in conjunction with the acquisition of a 2001 Saturn SL1 vehicle from Saturn of Knoxville on April 28, 2001. This obligation was payable through 39 monthly payments of $367.41, beginning April 28, 2001. The Petitioner failed to pay the monthly payments in accordance with this contract, and the General Motors Acceptance Corporation declared the obligation in default and repossessed the vehicle. The vehicle was then sold, and the deficiency obligation then remaining and due and owing General Motors Acceptance Corporation was $11,628.77. Demand was made upon the Petitioner for payment of this deficiency obligation by letter from GMAC dated December 21, 2001. * * * It is also undisputed that GMAC sent a Form 1099-C, Cancellation of Debt, to petitioner and to the Internal Revenue Service in 2002, reporting that petitioner received cancellation of indebtedness income in 2002 in the amount of $11,628. Petitioner contends that GMAC never released, canceled, nor discharged his obligation and that the Form 1099-C was erroneous.Page: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011