FIA "cancellation of debt" notice
Date: Thu, 02/07/2013 - 07:25
Hello - I recently received a "Combined Tax Statement for Year 2012" from FIA Card Services, based apparently in Greensboro, NC.
This letter has Bank of America's logos all over it.
The letter says "This statement reports 1099-C"
Goes on to say I owe them a ton of money.
I think part of this might be an old credit card debt from 5 years ago, that I tried to structure into manageable repayment, but could not and had not enough money to pay it off. Now it must have tons of fees added on.
I called their 800 number, and they were squirrely, evasive, wouldn't tell me anything about who they were or what this was about until I gave them all my personal info (DOB, SSN, etc). I refused, since I don't know who they are.
I'm wondering - is this just another collection agency? I thought BofA charged off this a few years ago, since I never heard back from them in the midst of trying to work out a payment solution.
This says "This is important tax information and is being furnished to the Internal Revenue Service. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been reported."
What the heck is this? Just intimidation tactic? What does old credit card debt have to do with the IRS?
Thanks for any insights.
This letter has Bank of America's logos all over it.
The letter says "This statement reports 1099-C"
Goes on to say I owe them a ton of money.
I think part of this might be an old credit card debt from 5 years ago, that I tried to structure into manageable repayment, but could not and had not enough money to pay it off. Now it must have tons of fees added on.
I called their 800 number, and they were squirrely, evasive, wouldn't tell me anything about who they were or what this was about until I gave them all my personal info (DOB, SSN, etc). I refused, since I don't know who they are.
I'm wondering - is this just another collection agency? I thought BofA charged off this a few years ago, since I never heard back from them in the midst of trying to work out a payment solution.
This says "This is important tax information and is being furnished to the Internal Revenue Service. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been reported."
What the heck is this? Just intimidation tactic? What does old credit card debt have to do with the IRS?
Thanks for any insights.
Forgiven debt (ie when a
Forgiven debt (ie when a credit card company settles an account or eliminates it altogether) in excess of $600 is considered by the IRS to be income, and as such must be reported as income in your tax return. this also means that you are no longer responsible for this debt.
You will now pay taxes on
You will now pay taxes on this debt since it is now considered income. It is no intimidation tactic.
