Settled debt and was told paid in full
Date: Thu, 08/19/2010 - 05:11
I was told, back in March of 2008, that if I had settled 2 accounts that I had with you they would be satisfied and reported as paid in full. Now I recieved a letter 2 years later from the IRS stating that I owe taxes on the charged off amount. I never recieved a 1099-c form from you to file and now I am being assessed a balance and penalties owed on this. I don't think that this is fair and want to know what you plan to do about this?
This is a public forum dedicated to helping people get out of de
This is a public forum dedicated to helping people get out of debt, any inquiries you have should be directed to the company you are referring to.
Quote:Originally Posted by AnonymousI was told, back in March of
Quote:
Originally Posted by Anonymous I was told, back in March of 2008, that if I had settled 2 accounts that I had with you they would be satisfied and reported as paid in full. Now I recieved a letter 2 years later from the IRS stating that I owe taxes on the charged off amount. I never recieved a 1099-c form from you to file and now I am being assessed a balance and penalties owed on this. I don't think that this is fair and want to know what you plan to do about this? |
This is a really good point you make. And I will ignore whatever your motivation is in acting like the forum is to blame.
In any event, it is often overlooked that the IRS will come back at taxpayers for substantial 1099's not included in a tax return. AND, often the 1099 doesn't make it to the taxpayer. While it may have been issued, it can easily be lost in the mail or misplaced.
So, if you settle in any event (whether or not you receive a 1099) you must assume you need to address it. Generally, a 1099 is issued because that is the only way the creditor can expense the loss.
The IRS expects you to report things. The fact that debt was forgiven makes the amount forgiven attributable to you as income. The only escape from taxes is insolvency.
