Originally posted by GoingDown
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The 3 year period of inactivity triggered a mandatory 1099-C form. They sent it to me in the mail in January of the following year. The entire amount of the debt (since I didn't pay them anything at all) and all the interest and late fees were canceled debt, and were about to be treated as income to me. OMG!!! Noooooooooo!!!!!
I freaked out and worried about it, and asked a lot of forums about what to do about it and got conflicting answers.
Finally, my Dad called from Oregon and when I talked to him about it, he said go see a tax preparer.
So, I did. She figured it out after just asking me a few questions, printed out the proper form and the proper paperwork, then did my tax return for that year, charged me a fee, and off the form went in the mail to the I.R.S.
I freaked out and worried about it, and asked a lot of forums about what to do about it and got conflicting answers.
Finally, my Dad called from Oregon and when I talked to him about it, he said go see a tax preparer.
So, I did. She figured it out after just asking me a few questions, printed out the proper form and the proper paperwork, then did my tax return for that year, charged me a fee, and off the form went in the mail to the I.R.S.
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