texasbadlands

How to settle and avoid getting 1099-C

Recommended Posts

How does one attempt to settle an old debt that is outside the State Statutes of Limitations. I live in Texas and the time is 4 years. The last payment made on this debt was January of 2006. The account went delinquent in the summer of 2005. I am offering a payment that is lower than the collection agencies claimed amount. I do not know where they got their amount. I do not want to offer a payment and then get hit with a 1099-C that claims $10,000 or more. How can this be done?

Share this post


Link to post
Share on other sites

Gonna be hard to do. By law they have to give you a 1099-C if the amount is over six hundred dollars and within a certain time period as I recall. Went through it myself this year.

Only way out is either file BK, in which you would not need to pay anyone anything, or worry about the balance being sold off and them coming after you again. The second way is to prove you were insolvent the year the 1099-C is issued.

Share this post


Link to post
Share on other sites

Falling off your reports has nothing to do with the 1099c. You still owe it and if they take you to court and you raise SOL as a defense, that's one of the "triggers" for issuing a 1099c. If they decide to give up, that's another trigger.

The Irs is going to get their pound of flesh..

Share this post


Link to post
Share on other sites

Yeah, but at lease the IRS is somewhat reasonable, they will take that pound of flesh in ounces over time:)

Share this post


Link to post
Share on other sites
Yeah, but at lease the IRS is somewhat reasonable, they will take that pound of flesh in ounces over time:)
if 1099c is issue after 36 months of last payment you can contest any 1099 c in us tax court and dont pay taxes on the amount of 1099c if you make a payment now probaly they will used this new last payment date to issued the 1099 c then you have to pay taxes on the amount forggiven. if debt is old will fall off your credit report as other said above and if more then 36 months past by since last payment they you are off the hook to pay taxes on the debt. your decision your callxdancex

Share this post


Link to post
Share on other sites

I'm not quite sure what the previous poster is trying to say, but according to the IRS, no collection activity for 36 months is one of the "triggers" for issuiing a 1099c. You still owe taxes..

Share this post


Link to post
Share on other sites
Guest
This topic is now closed to further replies.