I had two customers who were working online and had to file either a foreclosure or a short sale. They were using the online version and when they entered the 1099C information, it took both customers to owing an enormous amount in taxes. One customer had w-2 wages of $17000 and had four children, until they entered the 1099C information they were getting almost $5000 back because of EIC. After the 1099C information was entered online, it took them to owing over $7000 in federal and $4000 in state taxes. When I recreated their return online and got the same results even though after entering all of the 1099C information, we got a page saying "Congratulations, you do not owe any taxes on this amount". I researched the knowledge base, entered the information online with them, chatted with Tier 2 and we still could not find any information.

I spoke with one of our Tax Experts and received the information that customers filing the 1099C needed to use the desktop version, the online version causes this error. It would have solved my customers a lot of turmoil if I had this information when I spoke with them.