mjs65chevy Posted November 30, 2004 Report Share Posted November 30, 2004 Am new to the site but needing every resource I can find. Had a lengthy disability (3 years) starting back in 1996. Shortly after that began, my car was repossessed due to being behind in payments. Was never notified of any proposed resolution and had a number of initial issues since my loan was protected by insurance; however, at the time was not well enough to deal with the situation. Have received ltrs over the years but ignored them since the CA never responded to my requests for validation of the dollar amount. Also received a number of settlement offers which were also ignored. Today received a ltr indicating if payment in full was not received immediately they would report the dollar amount to the IRS for possible inclusion in my income for 2004. Really need this to go away but am not sure what to do. Link to comment Share on other sites More sharing options...
DocDon Posted November 30, 2004 Report Share Posted November 30, 2004 When was the last payment made? Start by checking the SOL.Who threatened you w/ this? Link to comment Share on other sites More sharing options...
dixiedrifter Posted November 30, 2004 Report Share Posted November 30, 2004 If the CA reports the dollar amount to the IRS, that is good for you because it means they are forgiving the debt.I'd say though that consists of a violation. Link to comment Share on other sites More sharing options...
DocDon Posted November 30, 2004 Report Share Posted November 30, 2004 But they can only "forgive" up a certain amount... I'll dig up that number...The rest can be pegged to you as "income" - not a good thing. Link to comment Share on other sites More sharing options...
Leadhead Posted November 30, 2004 Report Share Posted November 30, 2004 But they can only "forgive" up a certain amount... I'll dig up that number...The rest can be pegged to you as "income" - not a good thing.Doc,I think it's $600. Link to comment Share on other sites More sharing options...
LadynRed Posted November 30, 2004 Report Share Posted November 30, 2004 They are referring to a 1099-c 'cancellation of debt income' and its unlikely that a CA will FORGIVE ANYTHING. Its a BS threat to scare you. Even if they DID submit a 1099-c (any amount of $600 or more of forgiven debt), if you can prove to the IRS that you're insolvent at the time it was issued, you do NOT have to claim it as income at all -- but of course CA's fail to tell you that part of it.Besides, if the repo happened in 1996, the SOL in AZ for written contracts is a mere 4 years ! The SOL expired a long time ago. Send the dirtbag CA to get bent with a C&D letter - the debt is time-barred. Link to comment Share on other sites More sharing options...
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