Author Topic: 1099 issued, Settlement indicated no 1099 as debt disputed  (Read 1737 times)

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maggie22

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1099 issued, Settlement indicated no 1099 as debt disputed
« on: February 12, 2013 04:12:27 PM »
Settled a 2 year fight w/ D card for 10%.  Settlement docs indicated creditor would refrain from issuing a 1099, and in a show of good faith (lol)  would delete any negative tradelines.

Interestingly enough, the same lawfirm re-dunned on the same D account within a short time post settlement.

I can say overall that was a big mistake on their part, which resulted in 4 times+  the 10% referenced above.

Now the OC issues a 1099.

Thoughts...Thx 

kevinmanheim

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Re: 1099 issued, Settlement indicated no 1099 as debt disputed
« Reply #1 on: February 12, 2013 07:53:59 PM »
No one can enforce a settlement agreement that includes a provision that is not legal.

Not issuing a 1099 on taxable income goes against the tax code.

In other words, there's nothing you can do about it.

maggie22

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Re: 1099 issued, Settlement indicated no 1099 as debt disputed
« Reply #2 on: March 27, 2013 05:35:48 PM »
Just wanted to follow up on this issue.  I sent an email, and shortly thereafter received a corrected 1099C.  Amount changed to ZERO.

kevinmanheim

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Re: 1099 issued, Settlement indicated no 1099 as debt disputed
« Reply #3 on: March 27, 2013 08:09:09 PM »
That doesn't change your tax liability.

It only changes what the IRS knows, or doesn't know.