received a 1099-c with a filed judgment

[blackdiamond]

I received a 1099-c today from Santa Barbara Bank and Trust. They had filed a judgment against me several years ago, but I was not properly notified at the time. I have 2 questions: Can I have the balance changed on my credit report to 0 on the judgment and the negative account (debt shows up twice.)? If so, how would I go about changing it? Does receiving a 1099-c end their collection rights? Please advise.

[soyelmismotony]

I received a 1099-c today from Santa Barbara Bank and Trust. They had filed a judgment against me several years ago, but I was not properly notified at the time. I have 2 questions: Can I have the balance changed on my credit report to 0 on the judgment and the negative account (debt shows up twice.)? If so, how would I go about changing it? Does receiving a 1099-c end their collection rights? Please advise.

The irs wanted to change tax liability on a person he failed to report 1099 c on his taxes the case reach The tax court. who send the 1099-c was porfolio recovery the default money was from maryland bank national association (MBNA).

The Irs determined a deficiency i8n David Stewart's 2008 income tax of $2138 base on a 1099-c issed by the collection agency. The underlying debt was incurred on a credit card obligation in 1994, and was defaulted on in 1996, maryland bank national association(MBNA) charge off the debt the same year.

portfolio recovery associates llc acquired the defaulted account in late 2007, and began making automated attempts to collect payments. Stewart wrote to PRA, demanding that cease its automated collection activitie. once PRA recived the letter, it stopped attempts at collection and issed stewart a form 1099 c, cancellation of debt, which reported $8750 in COD income for taxable year 2008.

In its notice of deficiency, the IRS increased Stewart's income by that amount, and Stewart file a petition in Tax Court. The IRS contended that Stewart's debt was discharge in 2008 when the form 1099-c was issed, whereas Stwart argued that the debt the debt was dischar long before then.

The court, noting that the debt is discharge the moment it becomes clear that it will never be repaid, acknoledged that it isoften impossible to find only one event that clearly establish the moment at which a debt is discharge, such as pinpointing the moment when property has being abandoned.

one of the identifiable events under which debt is consider discharge under the regulation is the expiration date of 36-month non payment testing period . which the Tax court said expi8red in 1999. Therefore, the court found that stewart had no COD income in 2008.

the key here I think is the 36 month period since charge off.

Edited June 11, 2012 by soyelmismotony