Iamweldar Posted June 24, 2013 Report Share Posted June 24, 2013 In August 2012 thanks to the help of this site I won a case against a debt Collector, I went unde the name of Barney.I did not use Barney as I could not remember my password. Before I found this great site . I was sued by Portfollio Recovery Associates, I hired an Attorney who convinced me to settle. I settled leaving a balance of 9,000.00 (2011). Today I get a letter from The Internal Revenue Service for payment of back taxes for that year in the amount of 2,500.00. Has anyone tried to fight this process. I cant believe I took that Attorneys advice.The amount that was forgiven was $9,000.00 but it included several thousand dollars in late fees, interest and attorney fees, that I do not think should have charged as income.People beware before you settle, It pays to fight. They will send a 1099 to the Internal Revenue Service.Thanks,Iamweldar Link to comment Share on other sites More sharing options...
kutuzov Posted June 24, 2013 Report Share Posted June 24, 2013 You already settled so my guess is the 1099c is valid, pay the taxes if you got the money IRS will be a hard bone to chew. Link to comment Share on other sites More sharing options...
willingtocope Posted June 24, 2013 Report Share Posted June 24, 2013 Get a copy of IRS Pub 4681. It talks about claiming "insolvency" using Form 982. Might not work for you but worth looking at.... 2 Link to comment Share on other sites More sharing options...
TomnTex Posted June 24, 2013 Report Share Posted June 24, 2013 They can only charge you for the amount charged off, not interest and fees. Like Willing said, if you were insolvent at the time file for it. I did, came out owing nothing. 1 Link to comment Share on other sites More sharing options...
admin Posted June 25, 2013 Report Share Posted June 25, 2013 So this was a collection agency and not the Original Creditor? They shouldn't be allowed to file a 1099-C. Link to comment Share on other sites More sharing options...
TomnTex Posted June 25, 2013 Report Share Posted June 25, 2013 True, but more and more of them are doing it and making big money on the few dollars that they are spending on the debt. Link to comment Share on other sites More sharing options...
Iamweldar Posted June 25, 2013 Author Report Share Posted June 25, 2013 I have checked several IRS regulations, does anyone know off hand where I can read up on Collection agencies not being able to file a 1099-C, I enjoy the reading and learning so I do not make the same mistakes twice.IamWeldar Link to comment Share on other sites More sharing options...
drummer55 Posted June 25, 2013 Report Share Posted June 25, 2013 So this was a collection agency and not the Original Creditor? They shouldn't be allowed to file a 1099-C. Do you have any legal links stating it must be the OC and not a CA? 1 Link to comment Share on other sites More sharing options...
Iamweldar Posted June 27, 2013 Author Report Share Posted June 27, 2013 Do you have any legal links stating it must be the OC and not a CA?Just the letter from the IRS that says it was Portfolio that turned in the 1099 Link to comment Share on other sites More sharing options...
Iamweldar Posted October 11, 2013 Author Report Share Posted October 11, 2013 I have the forms for insolvency , I called the IRS and they said they only want estimates. Do you have any sites that offer more infromation and the instructions are hard to follow.I am weldar Link to comment Share on other sites More sharing options...
willingtocope Posted October 11, 2013 Report Share Posted October 11, 2013 If you google 1099c, you'll find lots of sites that claim to know how to deal with them. The problem is...its been a moving target over the last 4-5 years as the IRS tries to determine how to get the most bang from your buck. You're better off trying to decypher the IRS gibberish. Link to comment Share on other sites More sharing options...
WhoCares1000 Posted October 11, 2013 Report Share Posted October 11, 2013 File an amended return and verify that the amount owed is $2500. The IRS can do computations but you are allowed to do computations too and see if the IRS is wrong and your tax due is lower. Look into the insolvency thing too. 1 Link to comment Share on other sites More sharing options...
TomnTex Posted October 11, 2013 Report Share Posted October 11, 2013 Best thing to do is like what I did. Go to a tax profession and pay them $250.00 to do it for you. Very ease, you supply them with the info they will need and then sign when it's all done. Link to comment Share on other sites More sharing options...
racecar Posted October 13, 2013 Report Share Posted October 13, 2013 The Form 1099-C instructions identify who must issue the form.The list includes financial institutions, credit unions, and organizations whose significant trade or business is the lending of money. I don't think Portfolio Recovery Associates lends any money. Link to comment Share on other sites More sharing options...
texasrocker Posted October 13, 2013 Report Share Posted October 13, 2013 Don't even mess with trying to get anywhere with inquiries to the IRS or "tax professionals" unless you know you can meet the IRS' requirements to qualify as insolvent. Instead send a letter to your state's Attorney General's office. If there is any possibility of relief due to wrong-doing by Portfolio Recovery then they will handle it and you could quite likely receive a cancelled 1099c from Portfolio in the mail. There is an old thread somewhere on this forum regarding Portfolio sending someone a 1099c and they finally got it disposed of because when the Attorney General contacted Portfolio of course they could not show any proof of owning the debt. Link to comment Share on other sites More sharing options...
VADebtor Posted October 13, 2013 Report Share Posted October 13, 2013 If Portfolio purchased the debt they can probably get away with issuing the 1099c. I agree with the advice to analyze your insolvency status and you can probably claim that to reach a zero balance owed. Link to comment Share on other sites More sharing options...
ASTMedic Posted October 13, 2013 Report Share Posted October 13, 2013 If Portfolio purchased the debt they can probably get away with issuing the 1099c.I agree with the advice to analyze your insolvency status and you can probably claim that to reach a zero balance owed.I can't just walk into DMV and tell them I bought X car and now need it regestered to me with no legal documentation.Just cus they bought it doesn't mean they can prove they own it.However the IRS may view settling the debt for less than owed as proof of ownership. Who knows when it comes to this gov. Link to comment Share on other sites More sharing options...
Recommended Posts