1099 c

[dj0751]

I received a 1099c on a debt that is more than three years old. CAP 1....It is a debt I have asked for Debt VALIDATION for back in May. Now they want me to "have a little more income" - 1551 bucks. It is a cancewllation of debt but they necer validated it, so do I still have to send this to IRS??

 

The SOL is past, but the 7 year mark isnt here yet. But the main thing is their failure to provide me with compelling evidence that I am the one that owes the money and that they are authorized to collect it from me. HOw do I know they are who they say they are?

 

WHAT RECOURSE DO I HAVE? DO I HAVE TO FILE IT WITH MY RETURN??

 

David

[breeze]

Yes, you have to file it as ordinary income. The good news is, they can't keep trying to collect it, or sell it to a junk debt buyer.

[hoapres]

Yes, you have to file it as ordinary income. The good news is, they can't keep trying to collect it, or sell it to a junk debt buyer.

 

Probably.

 

Although if you meet the insolvency test then you won't have a tax liability.

 

 

You might want to go over to the general credit forum and look at the thread 2007 1099C for a debt charged off in 1994.

 

Cap1 as the OC doesn't have to validate the debt. If I were hit with a 1099C then I am going to ask for the documentation to justify its issuance.