I received a tax notice from a company that said they are required to report a discharged debt of $600.00 or more to the IRS. It said please be advised that the above ss# or name listed above my not match what the IRS has on file. The information is correct do I have sign this and send it back in or can I just not sign it or will I be penalized?
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Discharged 2/27/06, closed 6/1/06
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What was this for? Did you settle a debt, such as agreeing to pay $2000 when you owed $3500? If so, you will owe taxes on the difference. Its like they gifted you the $1500.
This would not apply to debts discharged in BK.Most of my information is from personal experience or HOURS and HOURS of online research. When you're searching online, keep in mind there is no guarantee that the info is completely up to date, and your situation is unique from anyone else's. Do your homework, and consult with an attorney so you can make an informed decision. -
It was a debt consolidation loan (from 1998) for $3,000 never agreed to settle or anything. So I don't need to sign it.Discharged 2/27/06, closed 6/1/06Comment
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If it was something in your bk they should not be doing anything with taxes. Might be a good idea to have your attorney call them. Otherwise, you'll have a hard time straightening it out w/ the IRS.
SIgning it is not an issue. If they file a bogus 1099 you're gonna have issues.Most of my information is from personal experience or HOURS and HOURS of online research. When you're searching online, keep in mind there is no guarantee that the info is completely up to date, and your situation is unique from anyone else's. Do your homework, and consult with an attorney so you can make an informed decision.Comment
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Thanks Staci, I'll make sure he knows about it because I certainly don't need any issues that I will have to try an straighten out later.Discharged 2/27/06, closed 6/1/06Comment
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