1099-C Cancellation of debt form??

[HHM]

Since I have no assets , its more of a scare tactic, and it works!! Not concerned anymore. Thanks everyone.

That doesn't even make sense.

What is a "scare" tactic. A 1099-C is simply a required reporting document, it is not an attempt to collect a debt.

[merime]

Sorry, what I meant to say is that its nothing to fear.

[keepsmiling]

My dh just got a few of these from Chase. They seem to be doing this a lot lately. There is no acceptance by us necessary.
Since you are probably insolvent, chances are it won't cost you anything.

[merime]

From what I have learned, the third party junk buyer does it if the SOL runs out and they don't foresee payment. I also learned that the amount forgiven is rarely correct. If called upon in a dispute , the accuracy of the dates frequently results in a void. Most importantly, like said, if you were insolvent on the date they claim the identifiable event , you are not responsible for the tax fees. I fit all of those , so very little concern, knowledge gained and lesson learned.

[merime]

On a lighter note, maybe I should have offered the junk buyers the back stage/front row tickets we have for Taylor Swift- now those are worth something!!

[GoingDown]

I freaked out when HSBC sent me a 1099-C in the mail a few years ago, too.

Don't worry about it. It's not a big deal if you were insolvent when they issued it. And it sounds like you were.

After being way too scared about it, I ended up filing a 1040, a copy of the 1099-C and the 982 along with the worksheet showing that I was very insolvent when the 1099-C was issued, and I never heard another peep out of the creditor, and the IRS accepted my tax return-- their 3 year SOL for objecting to my tax return ended without a word from them.

I did not pay a penny of the debt, and I did not owe any taxes for it being forgiven.

In my case, the original creditor-- HSBC-- issued the 1099-C form after they sat on my defaulted credit card account for 36 months.

As for junk debt buyers issuing 1099-C forms, it rarely seems to happen. Most of my debts were bought by junk debt buyers, and the Arizona SOL has long since expired, and still no 1099-C forms from them.

From what I've heard on the debt collector-friendly forums, Junk Debt Buyers mainly seem to issue them after suing a debtor and losing due to the SOL.

[bcss]

Just be sure to do a tax return this year or you might hear from the IRS.

[merime]

Unfortunately , my husband filed the taxes back in early January. The accountant wants verification of the amount forgiven before anything is done. Also, being from a junk buyer, raised the question as to if a settlement is not agreed upon, and no prior notification was given is it even valid. He said junk buyers do this a lot when they don't predict a settlement. Finally it was mailed later than the Jan, 31 cut off date. I am going to leave this one to the accountant to handle. If anyone else has similar stories please post them. I think this happens frequently.

[tobee43]

It doesn't matter if the form came after the date.

You need to file an amended return. a creditor can send the 1099 whenever they want even if the debt was years old . why? because they can pick & chose when they want 2 write it off for their tax purposes, not yours.

[merime]

They are supposed to have them out by January 31, that is what I mean. It seems that Asset Acceptance really like me (joking), got a couple more today. Accountant said he would be surprised if they just keep coming. Better to hold off on the amendment until they are done filling the mailbox.

[tobee43]

They are supposed to have them out by January 31, that is what I mean. It seems that Asset Acceptance really like me (joking), got a couple more today. Accountant said he would be surprised if they just keep coming. Better to hold off on the amendment until they are done filling the mailbox.

yes, i understood what you meant. it's just really no where and no one there to spank them when they are "late". in the irs tax world they really do not enforce creditors or companies being "late" when sending 1098 and 1099, etc. truth be told i have seen them issued as late as april.

yes, i would hold off until hopefully you rec'd the last one. while it's also good to remember that most important irs tax filing date, most be do understand that really unless you actually OWE the irs it's really not that big of a deal. not so when you owe them, you best get the extension out with a preliminary payment.