1099 C amounts for credit cards from 1996

1099s are creatures of the IRS. You can read everything you want to know about a 1099c at this link: http://www.irs.gov/instructions/i109...02.html#d0e261

Debt buyers really have no choice but to issue the 1099C once they deem a purchased debt uncollectible and write it off their books. You can challenge the amount listed on the 1099C because it should only reflect the principle of teh original debt. Unfortunately, 5-7 years down the road, no one really knows what the principle is anymore. Had you ever disputed this debt in the past?

Is there a deadline or SOL for collectors to issue the 1099c tax forn to the debtor?

5-7 yers down the road?????

Sorry....some reason the links not working:

http://www.irs.gov/instructions/i1099ac/ar02.html#d0e261

If they can not prove the debt is even yours in my opinion they certainly would not be able to prove you owe tax on that debt. I would dispute the 1099c the best I could. It is really really difficult to fight the IRS though. If they decide you owe something then you will probably end up paying it and then some.

That's one of my questions that I haven't really found an answer too. If you dispute a debt and federal reporting period and SOL expire, which removes any leverage a JDB might have to extort money from you, would a consumer have grounds to contest a 1099C with documentation of dispute?

I know I would dispute it. I certainly would not pay tax on a debt that was not mine or a grossly inflated value. The debt isn't forgiven anyway unless they send you a paid in full letter. I don't think it is uncommon for a company to write it off and then sell the debt and that is double dipping. It isn't forgiven if they sell it and someone else starts trying to collect on the full amount anyway. If that was the case then you could be taxed over and over on the same debt by companies buying a debt, writing it off and then selling it.

After 7 years is it illegal to send a consumer a 1099c?

What happens if you get a 1099c for a debt from 1995? Isn't that oo old and expired to send a 1099c for?

One more question/statement.The third reason on the list of occurances to send the 1099c is about bankruptcy. It states a bankruptcy for a business or investment, but not personal bills bankruptcy. So, for personal debt...that means a 1099c can be included in bankruptcy filed after issuance of 1099c. It also means any debt you bankrupt cannot be issued a 1099c.

Font color changed for clarity - Jason

Bear, Because of the type, the question is unreadable.

1099c's are another way for the JDB to harass and scare you into payment. For one, by the time they get the debt, it has likely been wrote off by the OC, and one account cannot be written off like that more then once. Plus, an unvalidated debt can't be used as a 1099c....you would want to contact the IRS about it, since basically what the JDB is trying to do is circumvent law to get paid.....it is basically like me filing a 1099c with a made up sum of money...the JDB could get into alot of trouble over this because they are basically defrauding the government.

if the original credit card debt was written off by the credit card bank, shouldn't they send the 1099-c when the state's credit card sol ends?

not a debt buyer who adds all the interets and fees

Well from what I have read, if a company writes off a debt and claims it in their taxes, then they have to issue the 1099c. If they did this I do not think they could sell the debt since it was included as a tax write off and the debt was paid for by the debtors taxes so in essence the debt is no more.

It might make them more money to sell the debt rather then claim it as a tax write off, which is why people are likely not getting these 1099c's from the original creditors. By the time the junk debt buyers get the debt, they paid very little for it and would not profit by selling it again, especially if they attempted to sue and the SOL defense was used, would pretty much force the JDB to write the debt off and claim it on their taxes....if it is over $600 then they have to file a 1099c on it.

Oh and the 1099c can ONLY be for the principle amount and NOT for any interest and fees.