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business real estate debt. Sec. 108(a)(1)(A)-(D). None of these
exclusions apply in this case.
Petitioner claims he did not receive a Form 1099-C from
American Express discharging the debt. “The moment it becomes
clear that a debt will never have to be paid, such debt must be
viewed as having been discharged.” Cozzi v. Commissioner, 88
T.C. 435, 445 (1987). The nonreceipt of a Form 1099 does not
convert a taxable item to a nontaxable item. Vaughn v.
Commissioner, T.C. Memo. 1992-317, affd. without published
opinion 15 F.3d 1095 (9th Cir. 1993).
The Court concludes that petitioner realized discharge of
indebtedness income in the amount determined in the notice of
deficiency. Respondent, therefore, is sustained.
Reviewed and adopted as the report of the Small Tax Case
Division.
Decision will be entered
for respondent.
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