1099C questions

It is also important to keep copies of all communications if you dispute a debt or some portion of it. When I was a victim of ID theft, one of the accounts was "forgiven" and a 1099C filed. When the IRS contacted me, I sent them copies of my letters disputing the account. Within a few days the IRS sent me a letter saying tax due was $0.

You should not have to pay taxes on any amount disputed, but seek a tax lawyer for advice.

ok here's the deal. i bought a house with an ex 5 yrs ago. when me and my ex broke up, my banker advised me to sign the house over to my ex through the bank. but through the state it was still my name. the banker also told me that they would never be able to come after me for the money that my ex doesn't pay. well no i got a 1099c in the mail for 22,000. what can i do?

Welcome to the forum Peanut36

Well, if that is the amount they wrote it off for and it was still entitled to you (state), you may be stuck with it. I'm not entirely certain on this however, another member will be along with more knowledge in regards to this.

I was issued a 1099C for a cancelled debt. I filed it with IRS and paid taxes on it. After a yr or so the creditor refuse to release the liens on the properties for which the debt was taken. Isn't this a violation of the rules of 1099C issuance? What are the consequences and what can I do on my part to release the liens? Any documentation would help.
Thanks.

search google for "irs" and "p4681.pdf" first result is PDF on IRS.com website explaining this

see page 4 search for "How to report the insolvency exclusion" there are 2 examples

This doc does not mention anything about the liens (liens on the property and resindence placed by the creditor when the loan was made) where they must be removed since the creditor has issued a debt cancellation via 1099C and taxes were paid by the debtor. If they are paid to remove these liens, it will be double counting in their books. Shouldn't the liens drop off bcos of the 1099C? Please help.
Thanks.

You could take them to court and force them to remove it. I think you would have them for reporting false information as well if these are listed as unsatisfied judgments/liens on your credit reports. a 1099 is issued when a debt has been 'forgiven' meaning that it is no longer owed, so if it is reporting on your credit reports, it is doing so falsely...could get you a bit of money in damages and force them to remove them as well.

Another tactic you could use is to contact the court or county that is listing these and send them the IRS info showing it was forgiven and taxes paid on it..they should remove them then and you cut the other entity right out.