PRA and 1099-C Form
Date: Sat, 02/09/2008 - 09:03
I just read on Budd Hibbs' website that he is being flooded with complaints from consumers who are receiving 1099-C's from Portfolio Recovery
Associates:
"Many claim these debts date back into the mid 1990s and are no longer on their credit reports; most are past State statutes for taking legal actions and the majority appear to be far beyond the seven year statute for credit bureau reporting.
"Think about it. PRA cannot legally collect the alleged debt, because the debt is barred by the statute of limitations. Their philosophy seems to be that if the consumer won’t pay PRA, then the consumer should pay someone-and that someone is the IRS-so PRA can reap the benefit of a tax deduction? The question seems to be whether *Creative accounting allows that PRA can deduct the amount of the debt as shown on the 1099-C, and not the pennies on the dollar that they actually paid for the worthless debt."
This was a timely report, as my brother-in-law just received a 1099-C from PRA this week on an old debt which he sucessfully disputed two years ago. Just wondering if anyone else out there has received one, too, and what your thoughts are on this latest scam.
Thanks!
I, also, received 1099c from Portfolio Recovery for more than do
I, also, received 1099c from Portfolio Recovery for more than double the original debt. I have filed complaints with FTC, WVA AG, Texas AG, and IRS fraud unit. To protest the amount on the 1099C do I just write Portfolio Recovery a letter requesting they verify the amount, or do I have to do something else? From what I have read they can only send the 1099C for the amount of the original debt and not for their "fees and expenses."
If you have a 1099C from Portfolio Recovery you can file with th
If you have a 1099C from Portfolio Recovery you can file with the Taxpayer Advocate Service asking for help with this issue. I asked to have Portfolio verify the amount of the original debt and have the 1099C reissued in that amount. I, also, asked that the entire situation with Portfolio be reviewed by the IRS since this is such a large issue. I do not dispute that I have to pay taxes on the 1099C, only the amount for which it was issued. If enough people request assistance from T.A.S. perhaps the IRS will listen to us and audit Portfolio Recovery, and not allow them to use the inflated amounts on the 1099Cs they issued. I sent a letter to Portfolio asking they verify the amount of my original debt and reissue the 1099Cs in that amount (don't expect an answer but have to do it for completeness sake).
On 03/04l I received a 1099C from Portfolio dated 02/23 with the
On 03/04l I received a 1099C from Portfolio dated 02/23 with the "corrected" box checked, with VOID stamped across the front of it. I had two of these things, but only got one voided 1099C so far. Anyone else having this happen? I sincerely hope the second one is voided, too, but only time will tell. Still, sounds like they are pulling another scam of some sort - cancel one, but not the other one??? Then, they can sell the cancelled one on to another CA and the hell starts all over again!!!
On 03/06 I received the second VOIDED 1099C from Portfolio and h
On 03/06 I received the second VOIDED 1099C from Portfolio and had copy of their letter to VA AG office stating they were sorry for misunderstanding, but they were acting on best info they had! Now, I am really scared about what they are up to next, but am sure it will be just as scummy and probably illegal, as well. If everyone who deals with these creatures will stop paying them, the company would fold fast. Their clients have the power, not them, but people are just too scared to use that power as an individual. Just don't pay them and see what happens. If their collectors can't make big $$$ they will soon leave to look for more $$$. About three months and Portfolio will be out of business.