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 Posted: Wed Aug 27, 2008 1:35 am Subject: 1099 C amounts for credit cards from 1996 |
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Do 1099C forms state the dollar amount forgiven, as what it was when the debt was no longer paid, or the debt, now, with fees and interest added in?
Is there a time frame with an expiration, as to when a 1099 C can be sent to the IRS and consumer?
It seems for credit debts 5-7 years old there wouldnt be a 1099c given.
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PoorDebter
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NASCAR_Devil
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| Posted: Wed Aug 27, 2008 3:55 am Subject: |
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Is there a deadline or SOL for collectors to issue the 1099c tax forn to the debtor?
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another debtor
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| Posted: Wed Aug 27, 2008 3:59 am Subject: |
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5-7 yers down the road?????
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Bear
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| Posted: Wed Aug 27, 2008 4:23 am Subject: |
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Sorry....some reason the links not working:
http://www.irs.gov/instructions/i1099ac/ar02.html#d0e261
| Quote: | When To File
Generally, file Form 1099-C for the year in which an identifiable event occurs. See Exceptions below. If you cancel a debt before an identifiable event occurs, you may choose to file Form 1099-C for the year of cancellation. No further reporting is required even if a second identifiable event occurs on the same debt. Also, you are not required to file an additional or corrected Form 1099-C if you receive payment on a prior year debt.
When Is a Debt Canceled
A debt is canceled on the date an identifiable event occurs. An identifiable event is:
A discharge in bankruptcy under Title 11 of the U.S. Code for business or investment debt (see Exceptions on this page).
A cancellation or extinguishment making the debt unenforceable in a receivership, foreclosure, or similar federal or state court proceeding.
A cancellation or extinguishment when the statute of limitations for collecting the debt expires, or when the statutory period for filing a claim or beginning a deficiency judgment proceeding expires. Expiration of the statute of limitations is an identifiable event only when a debtor's affirmative statute of limitations defense is upheld in a final judgment or decision of a court and the appeal period has expired.
A cancellation or extinguishment when the creditor elects foreclosure remedies that by law end or bar the creditor's right to collect the debt. This event applies to a mortgage lender or holder who is barred by local law from pursuing debt collection after a “power of sale” in the mortgage or deed of trust is exercised.
A cancellation or extinguishment due to a probate or similar proceeding.
A discharge of indebtedness under an agreement between the creditor and the debtor to cancel the debt at less than full consideration.
A discharge of indebtedness because of a decision or a defined policy of the creditor to discontinue collection activity and cancel the debt. A creditor's defined policy can be in writing or an established business practice of the creditor. A creditor's practice to stop collection activity and abandon a debt when a particular nonpayment period expires is a defined policy.
The expiration of nonpayment testing period. This event occurs when the creditor has not received a payment on the debt during the testing period. The testing period is a 36-month period ending on December 31 plus any time when the creditor was precluded from collection activity by a stay in bankruptcy or similar bar under state or local law. The creditor can rebut the occurrence of this identifiable event if:
The creditor (or a third-party collection agency) has engaged in significant bona fide collection activity during the 12-month period ending on December 31 or
Facts and circumstances that exist on January 31 following the end of the 36-month period indicate that the debt was not canceled.
Significant bona fide collection activity does not include nominal or ministerial collection action, such as an automated mailing. Facts and circumstances indicating that a debt was not canceled include the existence of a lien relating to the debt (up to the value of the security) or the sale or packaging for sale of the debt by the creditor. |
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All CA's are required to post a bond with the SOS
http://direct.sos.state.tx.us/debtcollectors/DCSearch.asp
When requesting Validation, reference the FDCPA as well as Chpter 392 of the TFC:
http://tlo2.tlc.state.tx.us/statutes/docs/FI/content/htm/fi.005.00.000 392.00.htm
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NASCAR_Devil
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| Posted: Wed Aug 27, 2008 9:01 am Subject: |
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If they can not prove the debt is even yours in my opinion they certainly would not be able to prove you owe tax on that debt. I would dispute the 1099c the best I could. It is really really difficult to fight the IRS though. If they decide you owe something then you will probably end up paying it and then some.
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DOLLARSandSINCE
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NASCAR_Devil
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| Posted: Wed Aug 27, 2008 10:47 am Subject: |
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I know I would dispute it. I certainly would not pay tax on a debt that was not mine or a grossly inflated value. The debt isn't forgiven anyway unless they send you a paid in full letter. I don't think it is uncommon for a company to write it off and then sell the debt and that is double dipping. It isn't forgiven if they sell it and someone else starts trying to collect on the full amount anyway. If that was the case then you could be taxed over and over on the same debt by companies buying a debt, writing it off and then selling it.
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DOLLARSandSINCE
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| Posted: Wed Aug 27, 2008 5:19 pm Subject: |
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After 7 years is it illegal to send a consumer a 1099c?
What happens if you get a 1099c for a debt from 1995? Isn't that oo old and expired to send a 1099c for?
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| Posted: Wed Aug 27, 2008 5:25 pm Subject: |
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One more question/statement.The third reason on the list of occurances to send the 1099c is about bankruptcy. It states a bankruptcy for a business or investment, but not personal bills bankruptcy. So, for personal debt...that means a 1099c can be included in bankruptcy filed after issuance of 1099c. It also means any debt you bankrupt cannot be issued a 1099c.
Font color changed for clarity - Jason
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Bear
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| Posted: Thu Aug 28, 2008 12:44 am Subject: |
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Bear, Because of the type, the question is unreadable.
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| Posted: Thu Aug 28, 2008 9:35 am Subject: |
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1099c's are another way for the JDB to harass and scare you into payment. For one, by the time they get the debt, it has likely been wrote off by the OC, and one account cannot be written off like that more then once. Plus, an unvalidated debt can't be used as a 1099c....you would want to contact the IRS about it, since basically what the JDB is trying to do is circumvent law to get paid.....it is basically like me filing a 1099c with a made up sum of money...the JDB could get into alot of trouble over this because they are basically defrauding the government.
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