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Help Please!!! 1099-C Asset Acceptance!!

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I received a 1099-C a few weeks ago from Asset Acceptance, LLC (P.O. Box 2036, Warren, MI 48090; (888) 397 - 8182) and I just wanted some helpful advice.

I'm planning to file it with my 1040 this year (I don't want no drama with the IRS). However, I KNOW the "amount of debt canceled" is inflated, roughly $500-600 dollars TOO much AND there is no "interest included" AND I don't remember hearing anything from this stupid company anytime last year or the year before, it's not anywhere on any of my 3 credit reports!!

I know the IRS doesn't care about this right now, so I'm wondering how would I go about disputing this after I file it (I don't mind doing an amended return and all that)?

I want to file, then dispute with asset acceptance, then get it canceled with the IRS because asset can't validate it (which they can't), then get it off my credit report. The statue of limitations must be up soon ( I can't find it on my credit report but I'm assuming its this year sometime) so that's another thing to consider in all this.

Thanks so much for you help,


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Why would you file it with IRS?

File a complaint with your State AG's Office, the Postal Inspector, and the IRS Tax Fraud department. If they can't prove the debt is theirs to cancel (and write off) they are committing fraud. Don't give in to their threats and tactics. This is a tax write off for them, and they aren't even (most likely) legally entitled to it.

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  • 3 weeks later...

So I started filling out the IRS form 3949-A. Under the section 5a, I'm writing what I think is a reasonable reply. Please advise...maybe I should add something else.

" "Asset Acceptance is junk debt buyer and they sent me a 1099-C for a debt in the amount of $1571.06. The state that the debt originally was owned by Dell Financial Services. I'm am concerned that that is a violation seeing that this debt has yet to be validated by Asset Acceptance, they have not provided me with any proof substantating that I am the owner of this debt or that I owe the amount they are claiming. In addition, they are in violation of the IRS instructions for filing a 1099C which states;

"A cancellation or extinguishment when the statute of limitations for collecting the debt expires, or when the statutory period for filing a claim or beginning a deficiency judgment proceeding expires. Expiration of the statute of limitations is an identifiable event only when a debtor's affirmative statute of limitations defense is upheld in a final judgment or decision of a court and the appeal period has expired."


"....This event occurs when the creditor has not received a payment on the debt during the testing period. The testing period is a 36-month period ending on December 31 plus any time when the creditor was precluded from collection activity by a stay in bankruptcy or similar bar under state or local law. The creditor can rebut the occurrence of this identifiable event if:

The creditor (or a third-party collection agency) has engaged in significant bona fide collection activity during the 12-month period ending on December 31 or

Facts and circumstances that exist on January 31 following the end of the 36-month period indicate that the debt was not canceled.

Significant bona fide collection activity does not include nominal or ministerial collection action, such as an automated mailing. Facts and circumstances indicating that a debt was not canceled include the existence of a lien relating to the debt (up to the value of the security) or the sale or packaging for sale of the debt by the creditor.

None of which has occurred. I believe this is reason enough to investigate their practices and determining whether their code of conduct is legal. "

Let me know what you think of this..maybe there's something I should add or subtract. Not really familiar with jargon and how things should be stated. After this I will file complaints with WI AG office.

Thanks in advance!

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Federal law requires them to file these things with the IRS when an identifiable event occurs. That is a different issue than debt validation. They're not going to break federal law because they haven't proven the debt is valid to you. If you request in writing for them to validate the debt, a CA can't continue collection efforts until they perform their required duty. But again, the IRS requires 1099 issuance, at certain trigger points regardless of their DV responsibilites.

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