What is the name of your state?Alabama. I lost my house in 2002 and I got a notice in 2004 from the IRS that my 2002 tax year included 1099's that I was unaware of I.E. forclosure income. How does this apply and what can I do about it. I did not earn enough income in 2004 to even owe taxes until those 1099's and I am unsure of what to do. Thanks for your input and help.