New 1099-C

[treehugger1]

I just received a couple of 1099-C's, code G; these represent my last outstanding debt with crapitalone. This 1099 was for a credit card debt that had increased to $4200.00 with default interest and fees. The non-interest, fully principle amount loaned to me was $823.00. This was the amount on the 1099-C.

Crapitalone has issued all four of my 1099_C's during the year when the SOL will expire. I was sued for one c1 card and paid the suit off via wage garnishment. I am now free-and-clear of C1!

I wonder how many credit card companies wait until you are within the SOL to issue a 1099-C. I do know that on the 1099-C there is a code for "uncollectable due to SOL." Has anyone ever received that code? LOL

[DYLAN150]

Tree: Do you have any knowledge of the IRS rule concerning the 36th month testing period? I read about it sometime back.

[tobee43]

you have to report it on your taxes unfortunately, because it's the creditors way of informing the irs of the cancellation of debt hence the "C". you must then just fill in a form 982 which is your way of communication to the irs of your insolvency status. there will be a worksheet. when filling out form 982 which can be found in IRS Publication 4681, including the insolvency worksheet. most likely 1,2,3, will apply and you are good to go.