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1040 form?


alexander323bc
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I did search for this but everything came up with a 1090 form. So I am little bit confused.

 

I got a letter from a JDB last october and I sent a letter asking for proper verifiication. Never heard anything back. Today I open my mail and I have an importan tax return document from the OC (bank of America) saying they have discharged the debt on 11/29/13. The statute of limitations was up on October 11th, 2013. Is this their way of knowing they missed the SOL so they are trying to get me to pay something some how?

 

So it says I need to file this debt as "other income" on my 1040 form. The balance is 8,903,.49

 

This would have been dismissed in court on the SOL. Kind of not sure what to do here. Any help please?

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I did search for this but everything came up with a 1090 form. So I am little bit confused.

 

I got a letter from a JDB last october and I sent a letter asking for proper verifiication. Never heard anything back. Today I open my mail and I have an importan tax return document from the OC (bank of America) saying they have discharged the debt on 11/29/13. The statute of limitations was up on October 11th, 2013. Is this their way of knowing they missed the SOL so they are trying to get me to pay something some how?

 

So it says I need to file this debt as "other income" on my 1040 form. The balance is 8,903,.49

 

This would have been dismissed in court on the SOL. Kind of not sure what to do here. Any help please?

 

This has nothing to do with a lawsuit or whether they CAN sue.  What you got is a 1099-c miscellaneous income from discharged debt.  Because you did not pay the debt and they wrote it off as uncollectable this is now attributable to you as INCOME.  You must declare it when you file your taxes this year.  If you have already filed you would need to file an amended return.  

 

Even the tax filing websites and programs know how to account for a 1099-c.  I have a couple of them for interest earned on accounts and rolling over an IRA.

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Ok thanks. I guess I am going off the idea that if they could not prove it was me to collect the debt the first time around and past the SOL how can I be taxed on it? I look at the IRA pub 981. I am hoping I can just google that. Thanks

 

They simply chose NOT to respond to you.  It does not mean they didn't have the proof.  If you got a 1099-c form the OC then it wasn't a JDB but the OC's collection agency trying to collect.  For what ever reason they chose not to pursue a lawsuit.  There is NO way to know why.  The burden of proof for court and what is needed to validate to you or report to the IRS is VERY VERY different.  Court has the highest standard.  

 

If you have proof the debt is not yours you can fight this with the IRS if not insolvent.  Otherwise if the debt IS yours then what proof they have is not relevant.  You defaulted and they can report any amount over $600 to the IRS as income to you.

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