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received 1099-c after dismissal with prejudice


jc225
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Hello All

Need some help please

From 2008-2010 I battled in court with a law firm for capital one debt for 9,604.00.The debt was not mine and I stated that all through the proceedings.

Finally came trial day.The plaintiff tried to settle with me for 500.Sounds good if the debt was mine,I declined.They had no proof whatsoever that this debt was mine.After 2 years of dealing with this in court and they had no proof,go figure.

When we appeared before the judge on day of trial:confused:,the plaintiff motioned for dismissal.I then made a motion for dismissal with prejudice and explained to the judge that the plaintiff dragged this out for 2 years with no proof that this was mine,what I had stated it was not my debt since the beginning.Also brought up the fact that I had case dismissed once before for the plaintiffs failure to appear,which they did multiple times throughout the 2 year ordeal.

The judge granted me the dismissal with prejudice ,the plaintiff take nothing.

This week I received a 1099c from Capital one for the 9,604.00.

Can they do this?

I have read on other threads that if both parties agree upon a dismissal with prejudice that a 1099 c it is possible.

We did not mutually agree for the dismissal.I made the motion to the judge and it was granted.

Is this IRS fraud on capital ones part?

Any help anyone can offer is greatly appreciated

Many thanks

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Hi

I too received a 1099-c from Cap1 this year but for an account that the amount is not what was listed on the lawsuit. I had a want of prosecution dismissal with cap1.

Let me know how you chose/did to fight with Cap1. or for that matter with IRS.

If this was absolutely not you account, then I would say yes, that it was fraud on the IRS and you for them doing so. Others may have more info. I just received my own 1099C and am fighting it.
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Hi

I too received a 1099-c from Cap1 this year but for an account that the amount is not what was listed on the lawsuit. I had a want of prosecution dismissal with cap1.

Let me know how you chose/did to fight with Cap1. or for that matter with IRS.

I read when the oc sends out a 1099c it will be for the original amount owed,no interest from a certain point.Probably the reason why the lawsuit was for more is that it included interest.I beleive read it somewhere on this site yesterday

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What they did is illegal. The only time a creditor or collection agency can send a 1099-C is when there is a settlement, not a dismissal. You need to find a consumer law attorney to take care of this for you, you will get money damages for it as well.

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Again, there is a difference between civil court and tax court. If the OC says the debt is yours and issues a 1099c according to the IRS rules (such as ceasing trying to collect because the civil court dismissed their case), its up to you to prove to the IRS that it isn't. In tax court, you're guilty until YOU prove otherwise.

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  • 2 months later...
A 1099-C is supposed to only be issued for amounts over $600.00.
Actually, this is one of those governtment-ese regulations. The actual IRS rules say, in effect, a 1099c MUST be issued for income over $600. They may be issued for income less than $600. And, whether its issued or not, you still owe taxes even if the amount is less than $600.
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  • 2 weeks later...

its a corrected 1099-c issued from a prior balance of $5711.42 to a corrected settled amount of zero.

i already filed my taxes for 2011. now what. i listed as cancelled debt $5711.42

on my tax return

Actually, this is one of those governtment-ese regulations. The actual IRS rules say, in effect, a 1099c MUST be issued for income over $600. They may be issued for income less than $600. And, whether its issued or not, you still owe taxes even if the amount is less than $600.
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Energizer,

If ou already filed the 2011 return with $5711 in income from the prior 1099, then it is in your best interest to amend the return. The IRS WILL NOT CARE if you do nothing. Because the total amount of tax you paid in 2011 is more or equal to the amount of tax you will pay if you amend.

I compare this to a person I know who doesn't file tax returns. He makes $20,000/year and withholding takes approximately $4,000 of that out of paychecks. The reality is, his insistence on not filing returns is a gift to the IRS because in all likelihood, $3,000 of that $4,000 would be returned to the taxpayer. But with no return, the IRS happily forks that over to Treasury. The IRS will not chase him because they recognize that he pays signifcantly more than he actually owes.

So I'd amend the return- it may take you an hour to do so and you may get as much as $2500 in extra funds returned to you (all dependent on state and federal marginal rates).

Good luck!

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  • 2 months later...

What would you say the deadline to have a 1099-C issued is? Lets say its March 30,2012. So Crap-1 issues a 1099-c for an acct# 123x and says that the bad debt is from a judgement listed as want of prosecution and its for an amount of $4584 and is in the mail to you on Feb 10th, 2012.

Come April 10th, a revision to that same acct # 123x comes to me in form of a corrected 1099-c stating that the original amount listed of $4584 is no longer true in fact the corrected amount to report is $0.

Now before you ever get this corrected 1099-c, you have e-filed and completed your taxes?

I have to ask why would Crap-1 intentionally do such a thing? issue a 1099-c with an amt within their allowed deadline, and later come back with a 1099-c as corrected with $0.

Is this by any means a fraudulent use of 1099-c by Crap1.

Can i bring this to their attention in anyway to have them remove my tradeline from credit bureaus

Do I report this activity to the IRS for my own Good by doing an amendment on my tax return?

I suppose anyone is allowed to send in a 1099-c corrected anytime after the tax filing deadline. but if you have already filed!!!!!!!!

Actually, this is one of those governtment-ese regulations. The actual IRS rules say, in effect, a 1099c MUST be issued for income over $600. They may be issued for income less than $600. And, whether its issued or not, you still owe taxes even if the amount is less than $600.
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