Form 1099-C Requirement

Date: Tue, 10/09/2007 - 16:18

Submitted by outlaw8117
on Tue, 10/09/2007 - 16:18

Posts: 164 Credits: [Donate]

Total Replies: 2

Hi All.. Been a long time since I wrote last. I have a doozy here that I haven't seen yet. Joseph, Steven & Associates just sent me a letter that said I owe their client XX amount and that they are informing me that I now have to claim this on my past taxes since I never paid it back thus making it income. They are instructing their client to immediately report this obligation to the IRS! Unless I immediately repay this amount I must be prepared to claim this. If this wasn't such a pathetic attempt to get someone to pay, I wouldn't be laughing. Does anyone have a good response for this?

well this is a new one to me! i've heard of a CA settling and t

well this is a new one to me! i've heard of a CA settling and then u get a 1099 for the remainder which doesn't seem right to me either...
Can't wait to see the answers on this one!
Good Luck,
Ang

lrhall41

Submitted by Ang on Tue, 10/09/2007 - 16:24

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Tell them the taxes you would end up paying on that "income" wou

Tell them the taxes you would end up paying on that "income" would be a hell of a lot less than paying the debt itself. So go ahead and report it. Besides, once they claim it as cancelled debt then they cannot come after you for any remaining balance.

I would have to throw something in like "I would rather pay the government anyway... that way they can give it right back to me when I file unemployment."

Or throw salt in a wound on a touchy subject with them ... "At least if I pay the government, I can help support funding for the Bankruptcy Courts."

lrhall41

Submitted by DebtCruncher on Tue, 10/09/2007 - 17:05

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