Cach LLC caused me IRS problems
Date: Mon, 11/29/2010 - 09:48
In 2008 Cach LLC sued me and Court dismissed the case. In good faith I still settled the debt (which was not even my debt) with Cach LLC. However, I have never been informed that it means debt cancalation and therefore it is taxable income. Additionally, Cach LLC never sent me 1099-c form. Now, IRS wants to penalize me because I didn't claim canceled debt as an income. If you have any input about this type of case, I would appreciate it. Andrew
Yes, IRS can do this. Anyway, it is your income and they can cat
Yes, IRS can do this. Anyway, it is your income and they can catch hold of you to pay that back.
In the US, any part of the debt forgiven or cancelled is taxable
In the US, any part of the debt forgiven or cancelled is taxable. So, you will have to pay the interest as per the IRS norms and guidelines.
