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Debt Consolidation Forums US tax system and impact on debt

1099C – do I have to pay tax on forgone debt?





Sub: 1099C – do I have to pay tax on forgone debt?
Sat, 09/04/2011 17:35



My question is: Are collection agencies and debt buyers included in the above groups who are allowed to issue a 1099c form? Also what is their deadline for issuing the 1099c? Do they have to prove the debt belongs to debtor?



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Unregistered

Sub: #1 Debt Cancellation on old joint account debt discharded by courtSat, 04/09/2011 - 17:35



I have just received a debt cancellation 1099c from debt collector on a joint credit card account that became inactive in 2002. My wife filled for chapter 13 and we completed all the payments required by the court last December. This account was discharged on her case. My question is , Do I have any recourse as a married filling jointly joint to reduce the amount reported by 1/2? or The statute of limitation (an 8years old debt) applies to this notice?


Unregistered

Sub: #2 Fiance' received a 1099c from a credit card settlement.. can I sSun, 02/27/2011 - 21:40



Fiance' received a 1099c from a credit card settlement.. can I still claim her as a qualifying dependent or does she have to file on her own?


Unregistered

Sub: #3 i HAD 3 DEBTs negotiated last year but only got one staement thaSun, 02/06/2011 - 05:14



i HAD 3 DEBTs negotiated last year but only got one staement that I owed taxes. when do they have to notify by and when do I have to pay it.If I pay my taxes now am I responsible to pay this year if notified later?


Sub: #4 Question - I live in California and defaulted on a $25K credit cSat, 02/05/2011 - 23:50



Question - I live in California and defaulted on a $25K credit card debt back in December 2002. Never paid anything or negotiated anything since then. The SOL is 4 years so it became uncollectible back in roughly 2006. It just rolled off my credit report recently. TODAY I got a 1099-C from the original creditor cancelling the entire $25K as of 5/31/10. Now, I can probably avoid paying taxes on it because I meet the IRS insolvency test for this debt. But my question is - can this cancellation be added to my credit report even though the original debt is more than 7.5 years old? Also, am I in for other nasty surprises in the future as other companies decide to issue me 1099-C's many years after I defaulted?

I'm beginning to think I should have just declared bankruptcy 8 years ago then I wouldn't still be dealing with this.


Unregistered

Sub: #5 :twisted: yes u do doesnt matter u still got 1099C and u will hMon, 01/17/2011 - 15:21



:twisted: yes u do doesnt matter u still got 1099C and u will have to file tax those 3 yrs testing period it all lie.... dont believe it even sol ran out you will still got 1099c and wont stop collection activity. good luck


Unregistered

Sub: #6 If your $55000 in credit card debt and have reverse mortgaged yoSun, 10/17/2010 - 18:10



If your $55000 in credit card debt and have reverse mortgaged your home and do not own anything , and only have $2000 a month in Social security income how bad does a 1099C effect you with the IRS? To me it doeasn't make sense to negoiate lower terms to pay off your credit cards.


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Sub: #7 Quote:Originally Posted by AnonymousIs it possible to get a 1099Thu, 08/26/2010 - 11:16



Quote:
Originally Posted by Anonymous
Is it possible to get a 1099-c for a debt as old as 10 years if the sol is just 3???


apparently it is, I just recieved a notice from IRS that I owed back taxes on income from a cancellation of debt on a credit card that we had at least 10 years ago, my husband is deceased and has been for 8 years and I know when he got sick we stopped paying everything so credit card had to be at least 10 years old. I had never heard of the collection agency the IRS listed and had to call them to see who it was. The SOL in texas is 4 years, and they reported this income in 2008, never recieved a 1099-c of anykind, and my address has never changed in 25 years. So yes, I guess they can. Although I will say that the IRS was very helpful in getting it resolved for me as the collection agency was NOT. It was reported as income in 2008, I recieved a tax notice to pay more last week, first I had ever heard of this.


Unregistered

Sub: #8 Quote:Originally Posted by AnonymousWhat do you do with a 1099 oMon, 04/12/2010 - 19:52



Quote:
Originally Posted by Anonymous
What do you do with a 1099 on a person who is deceased for going on 5 years? There was never anything filed against his probate. The SOL ran out in 2007? How do I answer to the IRS for this? I was never notified of any cancellation of debt until I received the 1099c this week.

Did you ever find our the answer to this question? I have a my Mom who just recently received a 1099c for my Dad that past away six years ago and now has to pay taxes on it. Is there a time frame in which the Creditor can file a 1099c and make them pay?


Unregistered

Sub: #9 If you are issued a 1099c then they can not collect on the debt Wed, 04/07/2010 - 17:19



If you are issued a 1099c then they can not collect on the debt any further as it is canceled by issuance of the 1099c. The collection companies can not double dip, especially if it past the statute of limitations.

The question I would like to have answered is about the 3 year testing period. That is supposed to start beginning when you did not make a payment and it subsequently went into default etc. After that 3 year period they were REQUIRED by the IRS to file a 1099c. So say you have a credit card that went bad in 2002 and now 8 years later it is passed the statute of limitations for collections. The had until 2005 or (2006) as it is a 36 month window to send the 1099c. There are supposed to be heavy fines for not doing so. The other issue is how are these rogue collection companies being able to use the threat of 1099c when first of all they do not have legal right to collect as the statute of limitations has passed and how is the 3 year testing period validated here.

It would be really nice if the IRS had some better guidelines on this as well as some statute of limitations on the filing of these 1099c things also.


Unregistered

Sub: #10 :pI received 1099 c on 4 different settelments through Debt manaMon, 03/29/2010 - 07:22



:pI received 1099 c on 4 different settelments through Debt managment. The settlements all were quoted payed in full. Do I have to pay taxes on the settlements and what if I do not receive a 1099 C on one.


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