CRA threatening 1099C
Date: Wed, 08/05/2009 - 14:37
CRA left a message for me and I called them back, mainly because they had been looking for me by calling my ex-husband, which was an interesting experience! CRA says that because of fees, etc. the amount due is now $18,000, and they had gotten preliminary paperwork to file to send me a 1099C. Can they do this on a debt that is over 8 years old? I'm not going to dicker with them ... they are nice people, and when I told her to put the 1099C when "the sun don't shine", she told me to have my attorney call her with a better attitude.
I cannot stretch my little SS check to cover $18,000, so what are my options. How is a 1099C handled in income tax?
Thanks in advance for your help.
Laura
This debt is probably out of the Statute of Limitations and they
This debt is probably out of the Statute of Limitations and they can't legally collect it. You need to check your credit reports to see if it is on them.
I know it would be beyond the SOL if it was a lawsuit, but I don
I know it would be beyond the SOL if it was a lawsuit, but I don't know if that applies to a 1009C, which would be filed with the IRS. I don't know if CRA will really file it, or if they are just threatening. She said she just thought I might want to take care of it before the paper work was filed. If it goes in as income, and they treat it like regular income, they it would not be the full $18,000 that I would have to pay.
But I don't really know.
I don't know either. Had a bottome feeder CA call me last month
I don't know either. Had a bottome feeder CA call me last month and threaten the same thing, I told him to send it and I haven't seen a thing yet.
Would love to know what anyone else knows about it.
Chrissy
oooo...found some information that might be helpful to you... IF
oooo...found some information that might be helpful to you... IF they do issue a 1099 c, then you have the option to look into insolvency, which balances your income and assets vs. bills and you can more than likely get it wiped because you are on ss.
Google 1099c and insolvency.
Hope this helps a little.
Chrissy
Thank you Chrissy ... I saw something alluding to that, but coul
Thank you Chrissy ... I saw something alluding to that, but couldn't determine whether the insolvency was to be at the time of the default or when the 1099-C was served.
I do live with my husband, and he gets his full SS and works full time. However, the credit card was only in my name.
I went dizzy reading some of the IRS documents, and their interpretations, and found that they just muddied my interpretative waters. I did discover that the 1099-c was to only be in the amount due at the time of the default, and not to include fees, etc. (like the $18,000 the witch claimed). This will lessen the load significantly. Also, 1099-C's are to be for amounts over $600. I do not remember what the final amount was due on the card when I defaulted, but the total credit level would not be more than $2500.