Author Topic: can a legal 1099cbe issued without a judgement or settlement agreement?  (Read 36730 times)

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flacorps

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Re: can a legal 1099cbe issued without a judgement or settlement agreement?
« Reply #45 on: February 18, 2011 05:25:08 PM »
If they did nothing more than call or write for 36 months, the requirement to issue a 1099c has been triggered.
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retnec

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Re: can a legal 1099cbe issued without a judgement or settlement agreement?
« Reply #46 on: February 18, 2011 05:38:11 PM »
if the debt has been disputed....until the debt is  proven...how does the 36 month period apply for a 1099c
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retnec

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Re: can a legal 1099cbe issued without a judgement or settlement agreement?
« Reply #47 on: February 18, 2011 05:59:12 PM »
if the debt has been disputed....until the debt is  proven...how does the 36 month period apply for a 1099c

to elaborate- i send out 10,000 letters to ppl i got of a mialing list..stating that they owe me $500-$1400 for consulting services. i keep sending out theses letters for 36 months, many people sent me a request for validation at whch time i just quit sending those people the letters, but they remian on my list. well it's been 36 months and time to send out the 1099c's.

what i am trying to point out is they issuer, in my opinon,is opening themselves to posible charges and fraud and fdcpa violations. they didn't validate yet you are issued a 1099c
you can claim the debt was never validated and you disputed the debt with the irs, but be ready to prove your case.
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flacorps

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Re: can a legal 1099cbe issued without a judgement or settlement agreement?
« Reply #48 on: February 20, 2011 05:08:37 PM »
what i am trying to point out is they issuer, in my opinon,is opening themselves to posible charges and fraud and fdcpa violations. they didn't validate yet you are issued a 1099c

That was one of the DBA's cavils in the Snow case. The DBA was told "tough cookies."
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Rottweiler

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Re: can a legal 1099cbe issued without a judgement or settlement agreement?
« Reply #49 on: February 20, 2011 06:36:52 PM »
The IRS does not care whether one gets verification of a debt or not!  If there is no substantial collection activity in 36 months (3 years), the requirement for a 1099c gets triggered.

However, what is "substantial collection activity" by a creditor on an unpaid debt?  That seems to not have been adequately answered, at least from what I remember.  The occasional collection letter and no other action might trigger the 1099c requirement.  Or, it might be enough to avoid that situation; I don't know if any rulings have been made on this point.

Anyway, it might well explain why that JDB (or creditors like CapOne) suddenly start sending collection letters out of the blue after they have been silent for, like, almost three years:  They are trying to keep the debt "alive" rather than be forced by the IRS to forgive the same. 

The 1099c situation also shows why "zombie" debt might be sold every few years even though the chances of collecting it are very slim:  As I also recall, when a debt is sold, the three-year clock starts over again.  The purchaser does NOT inherit the "no collections in three years, write it off" limitation from the prior owner.  Therefore not only does the previous owner manage to get something for the property (debt) but the new owner gets three years to actively collect or dump the debt on to someone else.

And THAT could theoretically continue...forever...so don't assume if one has not heard from any collector in three years that there has to be a 1099c out there to deal with (if you did not get a copy of one).  It may well be that the debt was handed off in time time and time again (no law says a creditor--as defined in any law or regulation--has to try to actually collect on any debt while they own it).
« Last Edit: February 20, 2011 06:50:02 PM by Rottweiler »
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flacorps

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Re: can a legal 1099cbe issued without a judgement or settlement agreement?
« Reply #50 on: February 22, 2011 03:55:39 PM »
I have always assumed that the big boys would just form offshore entities and temporarily or permanently sell debts to them in order to dodge those IRS rules.
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silverzgirl

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Re: can a legal 1099cbe issued without a judgement or settlement agreement?
« Reply #51 on: February 22, 2011 04:01:16 PM »
I have always assumed that the big boys would just form offshore entities and temporarily or permanently sell debts to them in order to dodge those IRS rules.

I think they do; one CA I am in a lawsuit with right now has offices in Barbados. How hard is it to pull chocks and fly their practice out of this state and off into the offshore yonder.
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HeadsUp

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Re: Is There a SOL on 1099C Forgiveness of Debt?
« Reply #52 on: September 27, 2011 12:00:54 AM »
In 2008, I worked as a temp for a week. I never received a W-2 and forgot about the assignment. A few weeks ago I got a letter from the IRS saying I owe them the back taxes for a job that was over 2 years old.

IOW, they will hit you. The IRS does tend to keep good records and while the high ranking government officials can cheat, Joe Mainstreet cannot forget. They will want their money eventually.

(The difference with the 1099 is that, from what I understand, the "income" forgiven has to be principal: purchases or other benefits...it cannot be thier interest and fees. Am I correct in this assessment?)

No, the one they sent me include interest for three years of me not paying anything. 

I claimed insolvency and received a "closing notice" from the I.R.S., so it is over for that debt.
Finally a collector admits it...

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All this nonsense about aggressive judgment enforcement against someone with no assets is just that-- utter nonsense.

http://www.debtorboards.com/index.php?topic=13309.msg100303#msg100303

flacorps

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Re: can a legal 1099cbe issued without a judgement or settlement agreement?
« Reply #53 on: September 29, 2011 04:06:06 PM »
Something new for this thread. Although the Snow case required the forms 1099-c in 2006, there was a little-noticed IRS ruling in 2008 or so that suspended the 36-month test. I don't happen to have the cite handy. Only learned about it a couple of months ago.

The information  didn't make it into my book
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trueq

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Re: can a legal 1099cbe issued without a judgement or settlement agreement?
« Reply #54 on: September 29, 2011 04:15:08 PM »
So what does "suspending the 36 month test" mean to the allowable issuence of 1099-C's?
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flacorps

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Re: can a legal 1099cbe issued without a judgement or settlement agreement?
« Reply #55 on: September 30, 2011 02:01:00 AM »
They're off the hook.
"History has taught us that weakness is provocative. To the extent that people see an area of weakness, they will take advantage of it..." - Donald Rumsfeld

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duh

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Re: can a legal 1099cbe issued without a judgement or settlement agreement?
« Reply #56 on: October 01, 2011 01:16:17 AM »
They're off the hook.

Meaning they do not have to 1099C?
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flacorps

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Re: can a legal 1099cbe issued without a judgement or settlement agreement?
« Reply #57 on: October 01, 2011 10:03:56 AM »
Right.
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WinningTheBattle2010

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Re: can a legal 1099cbe issued without a judgement or settlement agreement?
« Reply #58 on: November 04, 2011 03:08:43 PM »
 BoA sent out 1099C  both my deceased wife and I received seperate ones.

  My question is, BoA sold the house for the full amount including int and penalties,  and still sent out the 1099C for the full amount to both of us.  How can they get away with this?.  Fortunately I am insolvent.

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