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Installment Agreement/1099

Date: Mon, 12/13/2010 - 16:49

Submitted by Michael R.
on Mon, 12/13/2010 - 16:49

Posts: 11 Credits: [Donate]

Total Replies: 5


I have a Citi credit with about $11.5k due on it. Due to me losing my second job, I've decided to attempt debt settlment with all of my credit card companies. Citi just offered me a settlement agreeement of 21% after only 6 months! I'm going to jump on it, but I was wondering about the 1099 implications and how we're at the end of year.

I'm sure I can satisfy the IRS' "insolvent" clause, but would the 1099 be filed for the current tax year or will it be generated when the agreement has been completely paid off (the 21%).

I'm not going to pass on the 21%, I'm just curious about how the 1099 would work with the end of year (since i'm not going to finish paying it off until 2011).

Thanks in advance...