Dispute Balance With CRA on 1099-C Success

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I received a 1099-C in the mail from an OC. I realize in terms of accounting that I may have tax consequences by treating the discharged amount as income and that the OC can continue to report the full balance on my CRAs, which is the case.

 

Just curious if anyone has had any success in disputing the balance with the CRAs and providing a copy of the 1099-C as a supporting document? Obviously I would like to have the balance changed to $0 or even better have the tradeline deleted.

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submitting the 1099c will cement it to your reports, don't furnish it to the CRA's

 

what code is on the 1099c?

 

check your state court rulings - some states treat 1099c as a complete discharge/ forgiveness,

 

other states don't

 

if your state treats it as forgiveness, then dispute the amount reported with the CRA's

 

and 623 the OC.

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submitting the 1099c will cement it to your reports, don't furnish it to the CRA's

 

what code is on the 1099c?

 

check your state court rulings - some states treat 1099c as a complete discharge/ forgiveness,

 

other states don't

 

if your state treats it as forgiveness, then dispute the amount reported with the CRA's

 

and 623 the OC.

Box 6 has a "C".

 

Where would I check the state rulings for North Carolina?

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Google Scholar

 

check the Fed and BK courts too for your circuit.

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C—Statute of limitations or expiration of deficiency period;

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Wow, didn't know about scholar.

 

Anyway, searched for "1099-C forgiveness" with case law checked. Found this, but it is kind of contradictory.

 

On 31 May 2006, defendants filed a motion for summary judgment but did not state the grounds for the motion. In addition, defendants filed a motion for judgment on the pleadings. Subsequently, President Douglas signed an affidavit stating that plaintiff issued an IRS form 1099-C, "Cancellation of Debt," ("1099-C form") and as a result of issuing this form, defendant DHC's debt was cancelled. Defendants had not previously pled the affirmative defense of waiver or forgiveness of a debt in their answer or counterclaim. On 5 July 2006, Karla Whitfield, assistant controller for plaintiff, signed an affidavit stating the issuance of the 1099-C form was a clerical error, and that plaintiff subsequently delivered to President Douglas a voided 1099-C form via Federal Express.