1099c question

So tell them to walk it down to the freakin' bank and call for a check verification!! Geez, do we have to do their jobs, too??

Well guess we do! He still hasnt' called me back... i'm SO sick of thier BS, I really sud just take my chances with a judge cuz working with them is a nightmare!
Ang

What happens if you receive a 1099c form,file it on your taxes as income,but then a year or two later you pay off said debt?? Are you able to claim it as a deduction some how on your current year tax return? ie: defaulted on a $5000.00 credit card,issuing bank filed a 1099c form and you claimed it as income but then a year later paid the debt in full.

They should have to file these 1099's in the year that the charged off happened or not have the opportunity to file them at all, this seems to be common anymore, they should be penalized for not filing them on time, the consumer would be penalized if they did not file taxes on time, why should it not be the same for these companies.

Once a company files a 1099c, you file it on your tax returns and that's it. It is a debt forgiveness form, for tax filing purposes it's almost like they paid it out to you (whatever it is you owed them) so it's taken as a cost for business and it gets reported on your taxes.

Ok here is a question. Sometimes you offer a settlement just to not have to deal with the company any further, in the wording of the letter it states that:

this payment constitutes payment in full of the account, no other monies owed, account closed with a zero balance.

So how could a company file a 1099c if there is no remaining balance? There must be a way to word the settlement to state that what you are paying is what is owed and nothing further is owed. If the agreement was that both parties agreed that say $500 is owed, rather then the $800 they were trying to say is owed...then couldn't you avoid the 1099c that way? If they then file it, you could goto the IRS and tell them that the $800 was never owed, that only $500 was owed.....

If it is agreed to be paid in full on a settlement then there would not be anything to report on a 1099c, and they would be bound by your contract.

great! Then that is the way I will go from now on.

I AM HAVING SOME OF THE SAME PROBLEMS WITH A 1099C BEING FILE IN 2007 WHEN INFACT THE CAR WAS REPO IN 2001, RESOLDED IN 2001 AND CHARGED OFF IN 2001. NOW A CA FILED A 1099 TO IRS IN 2007, IRS CONTACTED ME 2 MONTHS AGO ABOUT UNREPORTED EARNING. WHAT CAN I DO NOW OTHER THAN PAYING TAXES TO IRS

You can file an ammended return but you will have to pay taxes on it

I don't want to do an ammended return because I think the time limit for the creditor to file the 1099 is past due. In 2001 I had lost my job and could not pay, my assest was lower that the debt so the company canceled. I think someone that bought the contact decided to filled the 1099 years later in 2007-----Is that legal

"According to the IRS regulations, a creditor has up to 3 years after the last ” collection activity” to issue a 1099c."

I found the above from an article on another web site. You might want to look on the IRS web site, using the search function, to find out more.

This person incurred in about $100K debt, I realized I did something really stupid lending my credit cards to my best friend, the plan was to fix her house and put it for sale, then pay off my cards, the house lost the value, and nobody is buying, she is not paying the debt and my credit fico is extremely low, I decided to talk to credit card companies to try to pay off this debts, they ask for lump sums of 50% of the amount of debt, I could probably do it, but I'm worry about the 1099c income form, there is anyway I can say that this is her debt, she is willing to sign papers with a lawyer.

i have already got my refund back but i got a corrected 1099
what do i do? i know i will owe the government but will they contact me and how long will it take?