26c questions on SF86

Line 26c states “Have you failed to pay Federal, state, or other taxes, or to file a tax return, when required by law or ordinance?” YES or NO

My First Question is if I received a CP2000 for a adjusted 2015 return do i need to check YES or NO?

My Second question is if the answer is YES I may have a issue. I have old credit card debt that I never paid and is not and has not been on my credit report for the last 7 years. They decided to send me a 1099-c that year and that is the reason for the CP 2000 from the irs. Advice?

I would explain exactly that. "In 2019 I received a 1099-C regarding a debt long since forgotten. I corrected it, and refiled. EdFarmerIII has chimed in specifically on getting a 1099-C. He knows that material much better than most. What say you Ed?

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If you paid it, no. This question is related to not paying taxes at all.

I’m going to assume that they sent you the 1099-C for 2015 (January 2016) and you didn’t file it. The IRS has now caught up and assessed you with addition tax liability for that year.

If that is the case and it was an honest mistake, I would answer “No” as you made an honest effort to properly file and you are in the process of correcting the error.

I would also suggest that you not take the IRS’s word that you owe additional taxes. Particularly if they are asking for a significant amount. I would ask them to allow you to file an amended return and consult a competent tax professional to prepare the amendment. The imputed income from the 1099-C may very well not be taxable at all and the IRS will NOT tell you this.

If you can figure out a way to find me outside of here, I would be happy to talk to you about your situation.


So don’t disclose the 1099-c not even in section 26( that debt was from 2007)?? You are correct i got a cp2000 about the 1099-c i paid it and thats it. I have one collection that is for a modem that they say didn’t return to the telecom that is paid in full. I was going to put that in section 26 and state after reviewing my credit report this was the only I collection could find.

I don’t believe that the 1099-C or the telecom collection will prevent you from clearing. Therefore, I would actually disclose both. But, I wouldn’t say that you ever failed to file or pay your taxes. The omission of the 1099-C the year it was issued was a good faith error that you corrected as soon as you were aware of it. The telecom collection was the result of a dispute with the company and you simply chose to pay it in order to make it go away. Document both and be ready to talk about them but this just isn’t a big deal.

This year i did File late few months so i suppose i would have to say yes

Report and be prepared to talk about it. There are many legitimate reasons for filing late and, if you were owed money, the IRS grants extensions of six months that are pretty much automatic. I doubt that it will be an issue.

I personally know someone whose spouse didn’t file their joint returns for 10 years. They retained their clearance after filing the returns.

so with a 600 fico and my 4k 1099-c and telco collection both paid. What are my odds at getting interim secret?

Tough one . . . Interims are not handed out like candy. Your employer has to request and justify the issuance of an interim and the government may not agree with the justification. That’s even before they look at your application.

On interims . . . Nobody knows . . .

You are clearable at FICO 600. But the odds are against you. They look at payment history, what led to the late and slow pays as well as as where you are now. The FICO is an excellent representation of where you are currently, but it doesn’t always reveal what you were doing 2 years prior. For clearance purposes they want to see reliability, trustworthiness, and this is often demonstrated in how one handles their finances. Once you fall below 630 FICO the odds are against you. I predict a denial on interim, but possible clearance if you continue to improve.

Ya my mom died and I got a few 60 days in 2017 and when my dad died in April I got a 30 day late. Other than that I have been on it. Stuff happens…

I got my interim within two weeks of submitting my SF86, I had my interview 2 weeks after that. I hope I get cleared so I can stop stressing over it.

If you are caught up now, that is the best defense moving forward. Life happens. As does death. I am sorry for your loss. Mundane tasks in life easily fall by the wayside when it happens.