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Fighting a 1099 - Chase - Equable Ascent Financial

The last post in this topic was posted 1668 days ago. 

 

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Hello friends.

 

I just thought I would post my current situation for others and seek ideas on dealing with a 1099.

 

Details on acct:

 

WaMu acct > Chase (DOFD 07/10 - CO 1/11) > Sold to HLF6 Hilco Receivables and was with them at least through 09/2013 (last report I have from that year) > must have ended up with Equable Ascent some time in late '13

 

Chase is reporting $o balance and Equable never reported to CAs, never attempted to collect (as far as I know), and never sent me a 1099.

 

About 2 months ago I got a letter from uncle Sam saying that I owe $$$ from 2013. The amount stated in the IRS letter was the exact amount of the CO by Chase and the 1099 was dated 12/31/13.

 

I, of course, disputed this with the IRS and they sent a letter to Equable, and of course, it came back as "the information is correct."

 

Based on my reading(s),

 

https://creditboards.com/forums/index.php?showtopic=438542

 

https://creditboards.com/forums/index.php?showtopic=157670

 

I'm thinking of handling it in this manner, unless someone has a better suggestion:

 

I am going to send a 623-type letter requesting validation and complete documentation of the history of the account, including how much the account was purchased for, when it was purchased, steps taken to collect said debt, and how the 1099 amount was calculated. I will remind them that we had no agreement as to an extension of credit, they have not forgiven any debt that I owe them, and that they have never validated this debt as mine.

 

If they feel they want to leave the 1099 that they reported the same as originally reported, I will let them know that I have no problem filing IRS Form 3949-A to report what I believe is Tax Fraud.

 

 

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Hello friends.

 

I just thought I would post my current situation for others and seek ideas on dealing with a 1099.

 

Details on acct:

 

WaMu acct > Chase (DOFD 07/10 - CO 1/11) > Sold to HLF6 Hilco Receivables and was with them at least through 09/2013 (last report I have from that year) > must have ended up with Equable Ascent some time in late '13

 

Chase is reporting $o balance and Equable never reported to CAs, never attempted to collect (as far as I know), and never sent me a 1099.

 

About 2 months ago I got a letter from uncle Sam saying that I owe $$$ from 2013. The amount stated in the IRS letter was the exact amount of the CO by Chase and the 1099 was dated 12/31/13.

 

I, of course, disputed this with the IRS and they sent a letter to Equable, and of course, it came back as "the information is correct."

 

Based on my reading(s),

 

https://creditboards.com/forums/index.php?showtopic=438542

 

https://creditboards.com/forums/index.php?showtopic=157670

 

I'm thinking of handling it in this manner, unless someone has a better suggestion:

 

I am going to send a 623-type letter requesting validation and complete documentation of the history of the account, including how much the account was purchased for, when it was purchased, steps taken to collect said debt, and how the 1099 amount was calculated. I will remind them that we had no agreement as to an extension of credit, they have not forgiven any debt that I owe them, and that they have never validated this debt as mine.

 

If they feel they want to leave the 1099 that they reported the same as originally reported, I will let them know that I have no problem filing IRS Form 3949-A to report what I believe is Tax Fraud.

 

 

 

It isn't tax fraud. This looks like a fairly classic 1099-C issuance. No ambiguity that it should have been issued earlier after a chain of possession. People seem to have this notion that somehow collectors can write off the face value of bad debts they buy. They can't and don't and are limited to writing off the pennies they bought the debt for. But this is completely different from the amount a 1099-C is issued for which relates to the monetary benefit a debtor gained when the debt is forgiven or otherwise deemed uncollectable. Whoever owns the debt at the point that IRS 1099-C filing requirements are met is the entity required to file a 1099-C.

 

Referring to this as some sort of Tax Fraud will just get you laughed at as clueless. Retracting the properly issued 1099-C would be against IRS rules.

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Hello friends.

 

I just thought I would post my current situation for others and seek ideas on dealing with a 1099.

 

Details on acct:

 

WaMu acct > Chase (DOFD 07/10 - CO 1/11) > Sold to HLF6 Hilco Receivables and was with them at least through 09/2013 (last report I have from that year) > must have ended up with Equable Ascent some time in late '13

 

Chase is reporting $o balance and Equable never reported to CAs, never attempted to collect (as far as I know), and never sent me a 1099.

 

About 2 months ago I got a letter from uncle Sam saying that I owe $$$ from 2013. The amount stated in the IRS letter was the exact amount of the CO by Chase and the 1099 was dated 12/31/13.

 

I, of course, disputed this with the IRS and they sent a letter to Equable, and of course, it came back as "the information is correct."

 

Based on my reading(s),

 

https://creditboards.com/forums/index.php?showtopic=438542

 

https://creditboards.com/forums/index.php?showtopic=157670

 

I'm thinking of handling it in this manner, unless someone has a better suggestion:

 

I am going to send a 623-type letter requesting validation and complete documentation of the history of the account, including how much the account was purchased for, when it was purchased, steps taken to collect said debt, and how the 1099 amount was calculated. I will remind them that we had no agreement as to an extension of credit, they have not forgiven any debt that I owe them, and that they have never validated this debt as mine.

 

If they feel they want to leave the 1099 that they reported the same as originally reported, I will let them know that I have no problem filing IRS Form 3949-A to report what I believe is Tax Fraud.

 

 

 

It isn't tax fraud. This looks like a fairly classic 1099-C issuance. No ambiguity that it should have been issued earlier after a chain of possession. People seem to have this notion that somehow collectors can write off the face value of bad debts they buy. They can't and don't and are limited to writing off the pennies they bought the debt for. But this is completely different from the amount a 1099-C is issued for which relates to the monetary benefit a debtor gained when the debt is forgiven or otherwise deemed uncollectable. Whoever owns the debt at the point that IRS 1099-C filing requirements are met is the entity required to file a 1099-C.

 

Referring to this as some sort of Tax Fraud will just get you laughed at as clueless. Retracting the properly issued 1099-C would be against IRS rules.

 

 

From everything I have read, I don't think a JDB can file a 1099 for the exact CO amount because they are not the ones writing off it off. The OC should have been the one to file a 1099 when they sold the debt and gave up their rights to collect on it.

 

I plan on sending my letter as stated before and meeting with a tax pro to see what other options they can come up with.

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Hello friends.

 

I just thought I would post my current situation for others and seek ideas on dealing with a 1099.

 

Details on acct:

 

WaMu acct > Chase (DOFD 07/10 - CO 1/11) > Sold to HLF6 Hilco Receivables and was with them at least through 09/2013 (last report I have from that year) > must have ended up with Equable Ascent some time in late '13

 

Chase is reporting $o balance and Equable never reported to CAs, never attempted to collect (as far as I know), and never sent me a 1099.

 

About 2 months ago I got a letter from uncle Sam saying that I owe $$$ from 2013. The amount stated in the IRS letter was the exact amount of the CO by Chase and the 1099 was dated 12/31/13.

 

I, of course, disputed this with the IRS and they sent a letter to Equable, and of course, it came back as "the information is correct."

 

Based on my reading(s),

 

https://creditboards.com/forums/index.php?showtopic=438542

 

https://creditboards.com/forums/index.php?showtopic=157670

 

I'm thinking of handling it in this manner, unless someone has a better suggestion:

 

I am going to send a 623-type letter requesting validation and complete documentation of the history of the account, including how much the account was purchased for, when it was purchased, steps taken to collect said debt, and how the 1099 amount was calculated. I will remind them that we had no agreement as to an extension of credit, they have not forgiven any debt that I owe them, and that they have never validated this debt as mine.

 

If they feel they want to leave the 1099 that they reported the same as originally reported, I will let them know that I have no problem filing IRS Form 3949-A to report what I believe is Tax Fraud.

 

 

 

It isn't tax fraud. This looks like a fairly classic 1099-C issuance. No ambiguity that it should have been issued earlier after a chain of possession. People seem to have this notion that somehow collectors can write off the face value of bad debts they buy. They can't and don't and are limited to writing off the pennies they bought the debt for. But this is completely different from the amount a 1099-C is issued for which relates to the monetary benefit a debtor gained when the debt is forgiven or otherwise deemed uncollectable. Whoever owns the debt at the point that IRS 1099-C filing requirements are met is the entity required to file a 1099-C.

 

Referring to this as some sort of Tax Fraud will just get you laughed at as clueless. Retracting the properly issued 1099-C would be against IRS rules.

 

 

From everything I have read, I don't think a JDB can file a 1099 for the exact CO amount because they are not the ones writing off it off. The OC should have been the one to file a 1099 when they sold the debt and gave up their rights to collect on it.

 

 

I plan on sending my letter as stated before and meeting with a tax pro to see what other options they can come up with.

 

 

Well, you have read lots of wrong stuff then. Whoever owns the debt at the point the obligation is "forgiven" based on IRS criteria a number, must file a 1099-C.

 

https://www.irs.gov/pub/irs-pdf/i1099ac.pdf

 

Subsequent holder. A subsequent holder of a loan is treated as a lender and is required to report events occurring after the loan is transferred to the new holder.

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If chase didn't own it in 2013,they couldn't issue a 1099c.

 

Do you have any old collection letters that state hilco was the current owner?

 

Chase bank accounts have lousy records

 

You will probably have to go to tax court if you can't file the 982 form

 

Indentifiable event defined :

 

 

https://creditboards.com/forums/index.php?showtopic=497511

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The last post in this topic was posted 1668 days ago. 

 

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