Question
Date: Wed, 12/01/2010 - 14:57
I understand that the IRS wants Debt Buyers to file a 1099 C so that the gov't can collect earned income tax from the indebted person. I don't quite get how the debt buyer technically "forgives" the debt, but then can then go and collect it. I just paid the earned income tax and now I am being forced to pay the debt by the DB or be sued. If they can't collect, can they sell it to another DB and I get 1099 C again?
This sounds like very incorrect information. Can you please giv
This sounds like very incorrect information. Can you please give us some background? If a lender forgives a debt you should not be forced to pay it. However, the amount that is forgiven is reported to you as income for tax reporting purposes.
