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 [...]
Entries Tagged as 'IRS'
Using a Credit Card to Pay Taxes: Not a Good Idea!
February 24th, 2009 · No Comments · Consumer Debt, Consumer Info
The IRS has implemented a number a changes to it’s policies in the last several years, and believe it or not, some of them (such as free e-filing) are actually beneficial to the taxpayer! Paying your taxes with a credit card, however convenient this may appear, is most likely not a wise financial decision for [...]
Tags: Convenience·Credit card debt·Credit Cards·Income Taxes·interest·IRS·uses of credit cards
Old Debt Settlements Can Come Back to Haunt with Large Tax Bite
December 1st, 2008 · 2 Comments · Consumer Debt, Credit Counselor Front Lines, Debt Collection
Q. I settled a debt in 2007 for less than owed, paying $15,000 on a $22,000 debt. I just today received a $7000 1099c for tax year 2007 from the creditor in the mail. Does this actually mean that I have to amend my tax return for 2007?
A. A 1099c is a [...]
Tags: 1099c·Credit Card Companies·Debt Settlement·Forgiven Debt·Insolvency·IRS·Junk Debt Buyers·Taxes
Some stimulus checks sent to wrong accounts
May 17th, 2008 · No Comments · Consumer Debt
Leave it to the government! I have to say this is pretty funny. Maybe Diebold was involved in some way? Good thing I’m having my check sent to me the old fashioned way.
Market Watch Link
An except:
Through the wonders of modern [...]
Tags: Checking Account·direct deposit·economic stimulus plan·IRS·Stimulus Checks
