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Entries Tagged as 'banks'

Can a Collection Agency Issue a 1099-C for Settled Debt?

July 13th, 2009 · 2 Comments · Consumer Debt, Debt Settlement

Under current Office of the Comptroller of the Currency (OCC) rules, when principal balances on debts are forgiven, the banks must write off the amounts forgiven and report it to the IRS. For debtors, that means they may be hit with the double whammy of a tax burden while they are still trying to pay [...]

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