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

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.