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Does 1099 "cancel" debt?


moe_delawn
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I received a 1099 from OC for my 2006 taxes. However they are still reporting that the balance is past due. This acct is way past SOL. I thought this would

be a $0 balance as it is a cancellation of debt and taxable income to me. I called and was told the balance remains the same as far as they are concerned, they

just aren't collecting on it anymore. Is this a case of the data furnisher providing

inaccurate info the the CRA's?

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Expiration of SOL is one of the eight identifiable events which triggers a filing

of a 1099-c. It is one of six that extinguishes the debt (others are bankruptcy,

negotiated settlement, foreclosure, probate, and in receivership). This is from

Treasury regulation 26 C.F.R. 1.6050P-1

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