Author Topic: Can you be issued more than one 1099 for a forgiven debt?  (Read 7883 times)

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Anza01

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Re: Can you be issued more than one 1099 for a forgiven debt?
« Reply #15 on: February 01, 2013 12:46:06 AM »
Wrong! It s been shown in other forums that even after a 1099-C has been issued, they may still decided to come after you and collect. NO specific law has been shown to prove that they cannot do so. In fact, it's coming out now that JDB are attempting to collect after a 1099-C was issued years earlier. Do your research in some of the legal  and law type forum's.

So the OC gets a tax break, the alleged debtor gets a tax bill and the OC can still go after the alleged debtor?

TomNTex

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Re: Can you be issued more than one 1099 for a forgiven debt?
« Reply #16 on: February 01, 2013 01:44:20 AM »
YEP!

silverzgirl

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Re: Can you be issued more than one 1099 for a forgiven debt?
« Reply #17 on: February 01, 2013 02:49:37 AM »
Yes but just because it happened in one state doesn't mean it is correct.

If it were me and I was confronted in court, I would ask the opposing party in front of the judge to define the word Cancellation. Because it is clearly on the form.
“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.

Anza01

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Re: Can you be issued more than one 1099 for a forgiven debt?
« Reply #18 on: February 01, 2013 05:50:34 PM »
Yes but just because it happened in one state doesn't mean it is correct.

If it were me and I was confronted in court, I would ask the opposing party in front of the judge to define the word Cancellation. Because it is clearly on the form.

I don't dismiss what TomNTex has said but I just got my first 1099-C from BofA (1 of 4, the highest amount owed at almost 15k) and it clearly said the debt was cancelled.  It seems that 1099-C showing the debt was cancelled would make a great exhibit in court.

Speaking of BofA, I had 4 accounts that all just went SOL in January 2013 going by the DE SOL.  I am in California so I should be able to borrow the DE SOL.  I don't want to rock the boat just yet but BofA continues to post outdated info on my CRA's.  Should I let the sleeping dog lie or launch a possible 623 dispute starting with the CRA's?  I'm on the fence on this one...

silverzgirl

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Re: Can you be issued more than one 1099 for a forgiven debt?
« Reply #19 on: February 01, 2013 06:48:36 PM »
I left BoA alone for a long while.

They sent a 1099C mailer that included both of the accounts, so I kicked the dog by disputing the amount with the CRAs which, per the 1099C, should be zero.

I am waiting for results.
“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.

TomNTex

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Re: Can you be issued more than one 1099 for a forgiven debt?
« Reply #20 on: February 01, 2013 07:38:28 PM »
Problem is, the JDB's don't care what is legal and what isn't. In my research, i've found where they will still try and collect after issuing a 1099-C. I got my last year. We haave a lot of discussion on the 1099-C over on CIC.

taz

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Re: Can you be issued more than one 1099 for a forgiven debt?
« Reply #21 on: February 11, 2013 01:58:00 AM »
Thus far, have not had an OC issue a 1099, only the jb.

Always keep the evidence for a 1099 payment in full. The original offer from the jb (I mail them back a copy of their offer), a copy of the payment (copy money order, all info), sent certified signature receipt, receipt from post office showing date and destination zip, and when it pops on credit report - pull it and keep! And yes, I do file it with the IRS, as more evidence the debt is settled. Those I have settled with show paid in full on my cr.

I don't see how any judge could side with another jb after the fact, with that much evidence the debt no longer exists.

Don't recall receiving a 1099 in prior bankruptcy, but the laws have changed. Don't think that is correct, in that the debt is discharged - it shouldn't be counted as income.

IMO, there must be some issue with BOA records.

Don't bank on using Delaware SOL, unless you're there. Best go by your own state before you kick the dog.

FYI, being written off doesn't mean it is gone or forgiven - just that they took it off their books as collectable. It can still be sold to other multiple jb who retain options to collect.

Much as I would like to declare insolvent on tax liability - thinking - you post those other debts on your return, you have pretty much stated you owe them. If your tax returns get subpoenaed by another creditor, you have pretty much given them a dunk shot.

So, wouldn't declare insolvent unless the biggest/majority are out of the way. A fine line, perhaps.

"So my question is this...since Chase sent me a 1099 I should not expect any further collection activity from them...is that correct?"  IMO, the debt is settled. File it on your tax return, pay the tax due and consider it over.



« Last Edit: February 11, 2013 02:20:16 AM by taz »

Just Plain Bill

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Re: Can you be issued more than one 1099 for a forgiven debt?
« Reply #22 on: February 11, 2013 02:24:03 AM »
Not necessarily so.
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Flyingifr

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Re: Can you be issued more than one 1099 for a forgiven debt?
« Reply #23 on: February 12, 2013 02:33:37 AM »
For Credit Cards, you can fight the 1099-c by notifying the IRS of the fraudulent 1099-c issued.

You also notify the bank of their fraudulent 1099-c.

The banks issue them to take a tax deduction, however the bank never "loaned" you money. Therefore the bank is committing tax fraud.

You just dispute it and file a copy of that dispute with your taxes.

I've known lots of people do this for the last seven years, and never has a problem with the IRS.

for more info on 1099-c you can check out www.creditcarddebtassociation.org

I paid a visit to Credit Card Debt Association's web site as in the link and I was not in the least impressed. I found numerous errors of fact in the first two pages I went to. Take what is posted there with a grain of salt and a ton of verification.
BTW-the Flyingifr Method does work. (quoted from Hannah on Infinite Credit, September 19, 2006)

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