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Posted: Sat Feb 02, 2008 7:18 pm Subject: 1099 Misc

I settled an account in 2007 for over $6,000. I have not received a 1099 yet. Do you think I should wait a few more days? Do not all creditors send out a 1099?

This was a charge off account but I settled with the original creditor.

Posted: Sun Feb 03, 2008 6:43 am Subject:

By Fed Law they are suppose to have the 1099C to you by 1/31 of the following year. If you don't get one, you don't file it. The IRS told me that until the creditor charges off and send you the 1099 you do not file the amount. She told me that some creditors will do it the following year. Were you insolvent when you settled? Otherwise, did your debts exceed your assets, if they did, you would file form 982 with your 1099C and would not be responsible for tax on the amount you are insolvent. However, do an asset and liabilities sheet of your position so you can show the IRS what your position was in the event of an audit.

Posted: Sun Feb 03, 2008 7:18 am Subject:

They only send a 1099 if what they settled off of was more thatn $600

Posted: Sun Feb 03, 2008 8:53 am Subject:

Moderator: this topic needs to be bumped to the Tax forum, thanks.. Smile

) I would amend what's been said to say that tax laws stipulate that documents need to be in the mail by 1/31, not received by 1/31. So I would definately wait on this one and if you haven't gotten one by this time next week, then move to plan b.

Posted: Sun Feb 03, 2008 9:11 am Subject:

Like soaplady said, any cancellation of debt over $600 should be reported by the creditor. If you receive a 1099C then you should definitely report it on your 1040.

However, in practice, I find many companies do not actually issue 1099C's. In 2006 & 2007, I settled 4 credit cards, all for more than $600 over the actual amount; yet only 1 of the 4 sent me a 1099C.

BUT to answer your question, any 1099's should be postmarked and mailed to the debtor by 1/31/08. Maybe you should wait a few more days in case your mail is running slow.

edin · Posted: Fri Feb 22, 2008 12:18 pm Subject: 1099

What are some of the deductibles i can present

Posted: Fri Feb 22, 2008 4:03 pm Subject:

Let me get this clear, as I am in the same situation. If they file a 1099c in the next year do I have to do an amended return for 2007 or do I put it on my 2008? Rolling Eyes

Posted: Sat Feb 23, 2008 7:03 am Subject:

An ammended 2007 return, I would think. It didn't happen in 2008, regardless of when it was reported.

Posted: Sat Feb 23, 2008 1:48 pm Subject:

Darn.........I hate the thought of doing my taxes once let alone twice. Mad

Posted: Sat Feb 23, 2008 7:10 pm Subject:

I just don't think that is fair. If they are required to mail 2007 information out to you by Jan 31 2008 but wait until the following year, why would we be required to claim this income. I know life isn't fair so I should just get over it. I just needed to give my opinion. Smile