creepyk Posted March 14, 2011 Report Share Posted March 14, 2011 I recently started my attempt to repair my credit but ran into a few problems.First, one of the credit reporting agencies is listing one of my debts 2 times. First is the one from the original creditor and then the second is from the collection agency. They are reporting different amounts and dates but the date of the collection agency picks up where the original debt leaves off if that makes sense. I am 100% sure it is the same debt but I am getting hit twice by the same problem... i even tried to call and settle the debt with the company in full and then they actually SCREAMED at me telling me to send the money right away and later they would send me documentation regarding the agreement.... yeah right....The second problem is that I just ran across an unopened (until now) piece of mail stating that citicard has cancelled my debt and that it was going to be reported to the IRS. The date of the last payment was about 3 years ago so I am like 3 years delinquent on that debt. What should I do? How will this affect my credit report? Can I still try the debt validation method? I could really use some advice... Link to comment Share on other sites More sharing options...
formerpara Posted March 14, 2011 Report Share Posted March 14, 2011 The form you received is probably a 1099c. The best thing to do to aviod paying taxes on it is to use IRS form 982 which is used to claim insolvency. There are threads on this board about it. Link to comment Share on other sites More sharing options...
jq26 Posted March 14, 2011 Report Share Posted March 14, 2011 And when they 1099 you, it is for the tax year that they cancel your debt. That could be years after the last time you made a payment. So unless you received a 1099, then I wouldn't worry about it. Besides, the SoL for tax returns is three years so long as you file it on time (ex: you filed your 2007 return in April of 2008, so on April 15th, 2011 the IRS can no longer assess a deficiency on any income properly reportable to 2007, subject to fraud exceptions). So if you are nearing the SoL, then I'd let it go and not disturb it. Link to comment Share on other sites More sharing options...
creepyk Posted March 14, 2011 Author Report Share Posted March 14, 2011 How does a debt cancellation affect my credit report though? Should I send the credit reporting agencies the letter saying my debt was canceled? Would that do anything? Link to comment Share on other sites More sharing options...
formerpara Posted March 14, 2011 Report Share Posted March 14, 2011 Here's a link that will help you better understand the 1099c thing.http://www.debt-consolidation-credit...highlight=1099 Link to comment Share on other sites More sharing options...
jq26 Posted March 14, 2011 Report Share Posted March 14, 2011 How does a debt cancellation affect my credit report though? Should I send the credit reporting agencies the letter saying my debt was canceled? Would that do anything?It doesn't. The two are totally different. 1099 generates income for you as per the IRS. The derogatory account will likely be reported on your credit report for the full 7 years. Link to comment Share on other sites More sharing options...
formerpara Posted March 14, 2011 Report Share Posted March 14, 2011 Here's another link from this board that is also helpful. http://www.creditinfocenter.com/forums/showthread.php?t=304897&highlight=1099c%27s Link to comment Share on other sites More sharing options...
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