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JDB 1099-C!!!!!


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I know much has been talked about on this, however, I didn't find anything that really fit my situation.

I received a 1099-C from Asset Acceptance a month ago, or so, and I'm really confused about the whole process....so far:

1. The OC, Dell Financial, hasn't sent me anything.

2. I haven't heard or received anything from Asset Acceptance, thus I was unable to dispute or request validation.

3. Asset Acceptance is nowhere on my credit report.

4. I already filed my taxes for the year.

From what I've seen on the IRS website is that you receive a 1099c once there has been some sort of dialogue between collector and debtor, for quite some time and after a period of time has elapse the collector considers the debt "uncollectable". No such dialogue, communication, letters, etc...exist.

Thanks in advance for your help.

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I am currently in the process of filling out 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.

Thanks in advance!

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I think you need to reread the treasury regulations. There are MANY reasons that trigger a 1099, not just the 36 month expiration period of collection activity. Furthermore, if a creditor wants to 1099 you on the first day thety own th debt, then it is permissible. The regulations require that at some point, the 1099 must be issued. It can happen before at any point, just not after.

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