I'm Drowning Posted March 29, 2007 Report Share Posted March 29, 2007 I just settled a debt from HSBC through GC Services (not yet charged off). There was no mention of the 1099 I'll be receiving in either conversation or the settlement letter I had them fax me. I realize I'll be receiving a 1099 but is there any steps I can take against GC Services for not revealing it? Just wondering what their liability might be for not revealing all the facts. Link to comment Share on other sites More sharing options...
willingtocope Posted March 29, 2007 Report Share Posted March 29, 2007 None, I'm afraid. There only liability is to send you one (maybe). And even if you don't get one, the IRS still expects you to claim the income. Link to comment Share on other sites More sharing options...
nascar Posted March 29, 2007 Report Share Posted March 29, 2007 Just wondering what their liability might be for not revealing all the facts.None. They are only required to send you a copy of the form. Note that if you are a joint obligor on the account, you may be exempt from receiving a 1099C. If you are a co-signer on a defaulted account, you are exempt. Link to comment Share on other sites More sharing options...
pinkeysas Posted March 29, 2007 Report Share Posted March 29, 2007 I settled an account with an OC. The amount owed was $1900 I paid a settlement of $1122. Would that mean I need to file a 1099? And if so what is that exactly? Link to comment Share on other sites More sharing options...
nascar Posted March 29, 2007 Report Share Posted March 29, 2007 You should receive an IRS Form 1099-C at the end of the year for $778.00. You (in most cases) will include this as income on your 1040 Form just like you would with a 1099-Misc or a W-2. Then, you'll pay tax on the $778.00. Link to comment Share on other sites More sharing options...
someonesomewhere Posted March 29, 2007 Report Share Posted March 29, 2007 I settled an account with an OC. The amount owed was $1900 I paid a settlement of $1122. Would that mean I need to file a 1099? And if so what is that exactly?You wouldn't file a 1099, the OC would send you one. I believe the IRS requires the filing of a 1099 if the amount is $600 or more. Looks like you qualify.Nothing for you to do but sit back and wait. I presume this was settled in 2007. If so, then next January, you can expect a 1099 in the mail. Just give it to your tax preparer. If you use software, online or local copy, you'll be prompted for it. Link to comment Share on other sites More sharing options...
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