Author Topic: 1099-C Confusion  (Read 27696 times)

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silverzgirl

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Re: 1099-C Confusion
« Reply #90 on: June 04, 2013 12:52:19 PM »
I also got a letter from EX claiming that they had to perform further investigation since what I sent does not constitute reason to change the reporting of the OC. I can buy that. Unfortunately this bought them an extra 30 days to investigate.

TU was easy. Within a couple of weeks, they had changed the balances to zero, and status to paid off, was a CO. They had also sent a letter stating they did not have my current addy on file and could not send the info…though both arrived the same day lol.

Still waiting to hear from EQ though. We are closing in on 30 next week. EQ is usually slow.
“Know your enemy and know yourself and you can fight a hundred battles without disaster.”  - Sun-Tzu

I am not a lawyer, nor do I play one on TV. I once thought I was a lawyer when I was litigating in a courtroom, but turns out I just had Patron induced bed spins and dreamed it all. Take my posts with a grain of salt...and a shot of Patron. But not so much you think you are a lawyer.

mrdoon

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Re: 1099-C Confusion
« Reply #91 on: June 04, 2013 03:44:13 PM »
The only trigger that does not dismiss is the 36 month nonpayment testing period but the creditor controls that...all they have to do is continue collecting in the 12 months prior to CY closing and they don't have to file the 1099C. TrueQ pointed this out already...they just need bonafide attempts to collect.

Keep in mind that "Significant bona fide collection activity does not include nominal or ministerial collection action, such as an automated mailing. Facts and circumstances indicating that a debt was not canceled include the existence of a lien relating to the debt (up to the value of the security) or the sale or packaging for sale of the debt by the creditor."

Another thought about this...  According to the IRS Instructions for Forms 1099-A and 1099-C, "7. A discharge of indebtedness because of a decision or a defined policy of the creditor to discontinue collection activity and cancel the debt. A creditor’s defined policy can be in writing or an established business practice of the creditor. A creditor’s practice to stop collection activity and abandon a debt when a particular nonpayment period expires is a defined policy."

I realize that informal guidance from IRS publications might not stand up in court but it could make for an interesting argument that, if they use "code G" instead of "code H" on the 1099-C, a debt that is beyond the 36 month nonpayment testing period could, in fact, be dismissed.  An example of this might be a debt that is both beyond the SOL and the 36 month nonpayment testing period. 

They might issue the 1099-C because they decided to stop collecting after you sent a FOAD letter notifying them that the debt was beyond the SOL.  So, even though the nonpayment testing period has expired, the debt is cancelled because of the "defined policy" to stop collecting.
« Last Edit: June 04, 2013 03:52:15 PM by mrdoon »

silverzgirl

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Re: 1099-C Confusion
« Reply #92 on: June 04, 2013 03:46:43 PM »
Mine had no codes at all. This year they will be mandatory.
“Know your enemy and know yourself and you can fight a hundred battles without disaster.”  - Sun-Tzu

I am not a lawyer, nor do I play one on TV. I once thought I was a lawyer when I was litigating in a courtroom, but turns out I just had Patron induced bed spins and dreamed it all. Take my posts with a grain of salt...and a shot of Patron. But not so much you think you are a lawyer.

mrdoon

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Re: 1099-C Confusion
« Reply #93 on: June 04, 2013 03:54:06 PM »
Neither did mine (from 2010) - I just added that part because the codes are now required. 

flacorps

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Re: 1099-C Confusion
« Reply #94 on: June 04, 2013 04:32:56 PM »
IIRC, the IRS is no longer enforcing the 36 month testing reg that was the subject of the DBA v. Snow suit. There was a ruling in 2008 I believe. Anybody got more details on that? Admittedly I ought to have it handy but I don't.
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bonedaddy77

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Re: 1099-C Confusion
« Reply #95 on: November 09, 2015 04:07:31 PM »
Anybody have any luck getting Chase account balances zeroed out? I got 1099c with G code and letter saying they canceled an unpaid debt on my account.

Did an online dispute with Equifax submitting the 1099c and letter from Chase but came back with OC verifying the original balance.

Dylan150

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Re: 1099-C Confusion
« Reply #96 on: November 09, 2015 11:12:25 PM »
I am in the same boat and I tried  for over a year to get them to remove the items with no luck!

bonedaddy77

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Re: 1099-C Confusion
« Reply #97 on: June 21, 2016 04:04:29 PM »
Just an FYI for others that received the 1099c from Chase. I sent a complaint to Chase, the CFPB and Attorney General of my state regarding them sending 1099c along with form letter stating that debt has been canceled to me yet still reporting balance owed on credit reports. They have removed the tradelines from all my credit reports finally. I called Chase before sending the letters and they refused to do anything about it. I read about this approach from this website so have to give them credit.

http://www.paulalangguthryan.com/jp-morgan-chase-forgives-consumer-credit-card-debts/

KFMAN

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Re: 1099-C Confusion
« Reply #98 on: June 21, 2016 07:25:11 PM »
 1215

gtadross

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Re: 1099-C Confusion
« Reply #99 on: October 12, 2016 08:21:43 PM »
I am an attorney investigating a potential class action against Chase Bank for forgiveness of debt via a 1099c but failing to update the debtor's credit reports accordingly.  If you have had your Chase debt forgiven via a 1099c, and find that the balance still shows on your credit report, AND live in California, please contact me.

Thank you. 

 

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