Merrick Bank

[ShawnPY1972]

I received a tax form in the mail from Merrick Bank for the year 2025 on an account that's more than 20 years old.  Lol.  I don't see how legally that they can report this to the IRS on an account that's more than 20 years old stating that it's a current debt.

 

I think they want me to contact them to probably contest the legality to give them the ability to speak to me in regarding the debt.  I won't be calling them.

[MarvBear]

That debt is long past the statute of limitations for either reporting or collection.

• • Issuing a 1099‑C does not mean the debt is “current.”
    It only means the creditor is reporting that they consider it canceled in that tax year — even if that’s absurdly late.
• Your issue will be with the IRS not Merrick.

• IRS Procedure for Bad or Erroneous 1099‑C

  The IRS instructs consumers to:

• Call the IRS (1‑800‑829‑1040) and report an incorrect 1099‑C.
• The IRS will open a Form 4598 complaint and send a letter to the creditor demanding a corrected form.
• You’ll receive a copy of Form 4598 to attach to your tax return if the creditor doesn’t fix it.

• This is the official remedy — and it avoids giving Merrick any direct contact.

   

  🧠 Why you’re right not to call Merrick

  Your instinct is correct. Contacting them:

• Gives them fresh contact info
• Confirms identity
• Potentially reopens communication channels
• Lets them claim “debtor engagement”

• There is zero legal requirement to speak to them about a 20‑year‑old account.

   

  🛡️ What this doesn’t mean

  Receiving a 1099‑C does not:

• Restart the statute of limitations
• Make the debt collectible
• Require you to pay the old debt
• Require you to negotiate with Merrick
• Mean the debt is “current” in any legal sense

•  

  🧭 What you should do next

  A clean, safe, non‑contact path:

  1. Check the form for obvious errors

  Common red flags include:

• Wrong date of “identifiable event”
• Missing phone number (required by IRS)
• Incorrect personal info
• Implausible cancellation year
  These issues are common and strengthen your dispute.

• 2. Call the IRS — not Merrick

  Tell them you received a 1099‑C for a debt over 20 years old and believe it is incorrect.
  They will initiate Form 4598.

  3. Keep the envelope and form

  Postmark and document retention help if the IRS asks for proof.

   

  🧩 Bottom line

  Yes, Merrick can technically file a 1099‑C — even absurdly late — but it has no effect on the debt’s enforceability. The only thing that matters is whether the IRS treats the form as valid, and you can dispute that without ever contacting Merrick.

[Flyingifr]

Marvbear gave you good advice above, now let me give you the rest of it.

 

The creditor must reports an "Identifiable Event" on the 1099C, Box 6.  Here is the verbatim instructions from the IRS Instruction sheet for Form 1099C:

 

Quote

When Is a Debt Canceled?

A debt is deemed canceled on the date an identifiable event occurs or, if earlier, the date of the actual discharge if you choose to file Form 1099-C for the year of cancellation. An identifiable event is one of the following.

1. A discharge in bankruptcy under title 11 of the U.S. Code. For information on certain discharges in bankruptcy not required to be reported, see Exceptions, later. Enter “A” in box 6 to report this identifiable event.

2. A cancellation or extinguishment making the debt unenforceable in a receivership, foreclosure, or similar
federal nonbankruptcy or state court proceeding. Enter “B” in box 6 to report this identifiable event.

3. A cancellation or extinguishment when the statute of limitations for collecting the debt expires, or when the
statutory period for filing a claim or beginning a deficiency judgment proceeding expires. Expiration of the statute of limitations is an identifiable event only when a debtor's affirmative statute of limitations defense is upheld in a final judgment or decision of a court and the appeal period has expired. Enter “C” in box 6 to report this identifiable event.

4. A cancellation or extinguishment when the creditor elects foreclosure remedies that by law extinguish or bar
the creditor's right to collect the debt. This event applies to a mortgage lender or holder who is barred by local law from pursuing debt collection after a “power of sale” in the mortgage or deed of trust is exercised. Enter “D” in box 6 to report this identifiable event.

5. A cancellation or extinguishment making the debt unenforceable under a probate or similar proceeding. Enter “E” in box 6 to report this identifiable event.

6. A discharge of indebtedness under an agreement between the creditor and the debtor to cancel the debt at less than full consideration (for example, short sales). Enter “F” in box 6 to report this identifiable event.

7. A discharge of indebtedness because of a decision or a defined policy of the creditor to discontinue collection activity and cancel the debt. A creditor's defined policy can be in writing or an established business practice of the creditor. A creditor's established practice to stop collection activity and abandon a debt when a particular nonpayment period expires is a defined policy. Enter “G” in box 6 to report this identifiable event.

8. Other actual discharge before identifiable event. Enter “H” in box 6 if there is an other actual discharge before one of the identifiable events listed above.

 

 

I am almost certain that Item 7 above describes the Identifiable Event in this case and their internal policies do NOT establish 20 years as the waiting period where they finally admit the debt is uncollectable. Therefore, the 1099C issued for 2025 is obviously false.

 

Too bad this was done by the OC and not a Debt Collector - you would have a perfect lawsuit under FDCPA for re-aging. Either way, I suggest you try contact Merrick Bank and determine what their Identifiable Event that happened in 2025 is. If they have none, then I would find out from them when the Identifiable event DID happen, try to create a Balance Sheet as of December 31 of that year and see if the Continued Insolvency exception would have applied had Merrick Bank done the 1099C in the correct year. That would be Exception "b" on IRS Form 982. Keep in mind that law (IRC Section 6501) only allows the IRS or you to go back 3 years to amend the appropriate year's return. For your 2025 return I would attach a note telling the IRS that you are not including the 1099C as 2025 income because the Identifiable Even occurred far earlier than 2025 and Statute does not allow amending the correct year's return.

[ZIonPels]

Not to hijack the thread, more for the ability to not have the wise people in this thread have to regurgitate the same info over and over, BUT..

 

I also recently received a 1099-c from Merrick from a debt charged off Nov. 2008 - not quite 20 years but close. I have been the victim of multiple events of identify theft the past few years (my ss is on the dark web unfortunately- don't think there is anything i can do other than freeze my 3 CR’s and add fraud alerts which I have done) so I already called MB and asked about the 1099-c before i saw this thread. They confirmed my CO date was 11/2008 and thats all i confirmed. 
 

My identifiable event code is indeed “G” and my “Date of Identifiable Event” was 11/25/2025. When i called back i asked what was the identifiable event was they could not say, only that they could confirm the charge off date. I asked them AGAIN what was the identifiable event, and was told they do not KNOW IT, and i needed to contact their “correspondence dept” in writing to obtain that info.

 

So how do i proceed if they wont tell me what the identifiable event was that happened in 2025?

 

Thanks in advance!

 

Pels

[ZIonPels]

NM

Edited February 4 by ZIonPels

[ZIonPels]

NM

Edited February 4 by ZIonPels

[ShawnPY1972]

On 2/2/2026 at 6:55 AM, Flyingifr said:

Marvbear gave you good advice above, now let me give you the rest of it.

 

The creditor must reports an "Identifiable Event" on the 1099C, Box 6.  Here is the verbatim instructions from the IRS Instruction sheet for Form 1099C:

 

 

 

I am almost certain that Item 7 above describes the Identifiable Event in this case and their internal policies do NOT establish 20 years as the waiting period where they finally admit the debt is uncollectable. Therefore, the 1099C issued for 2025 is obviously false.

 

Too bad this was done by the OC and not a Debt Collector - you would have a perfect lawsuit under FDCPA for re-aging. Either way, I suggest you try contact Merrick Bank and determine what their Identifiable Event that happened in 2025 is. If they have none, then I would find out from them when the Identifiable event DID happen, try to create a Balance Sheet as of December 31 of that year and see if the Continued Insolvency exception would have applied had Merrick Bank done the 1099C in the correct year. That would be Exception "b" on IRS Form 982. Keep in mind that law (IRC Section 6501) only allows the IRS or you to go back 3 years to amend the appropriate year's return. For your 2025 return I would attach a note telling the IRS that you are not including the 1099C as 2025 income because the Identifiable Even occurred far earlier than 2025 and Statute does not allow amending the correct year's return.

 

I want to say the debt is probably from the early 2000s.  I think it's right around 20 or 21 years.  I'll probably give the bank a call later this week.

[Flyingifr]

Zionpels and Shawn:

 

You both have two separate fights here - one with the bank miscoding the date of the Identifiable Date  by decades and the other with the IRS. I would consider the IRS the more important of the two because they will take the position that the 1099C is correct and start assessing tax on the long overdue tax debt that is re-aging to the current year, giving them another ten years to collect any tax due.  My advice on how to handle them is below, and is copied from my post above. Keep in mind that I am an IRS licensed Enrolled Agent with well over 40 years tax experience. I just may have a lttle more experience in dealing with the IRS than most people.

 

Quote

Too bad this was done by the OC and not a Debt Collector - you would have a perfect lawsuit under FDCPA for re-aging. Either way, I suggest you try contact Merrick Bank and determine what their Identifiable Event that happened in 2025 is. If they have none, then I would find out from them when the Identifiable event DID happen, try to create a Balance Sheet as of December 31 of that year and see if the Continued Insolvency exception would have applied had Merrick Bank done the 1099C in the correct year. That would be Exception "b" on IRS Form 982. Keep in mind that law (IRC Section 6501) only allows the IRS or you to go back 3 years to amend the appropriate year's return. For your 2025 return I would attach a note telling the IRS that you are not including the 1099C as 2025 income because the Identifiable Even occurred far earlier than 2025 and Statute does not allow amending the correct year's return.

 

[ShawnPY1972]

On 2/10/2026 at 6:49 AM, Flyingifr said:

Zionpels and Shawn:

 

You both have two separate fights here - one with the bank miscoding the date of the Identifiable Date  by decades and the other with the IRS. I would consider the IRS the more important of the two because they will take the position that the 1099C is correct and start assessing tax on the long overdue tax debt that is re-aging to the current year, giving them another ten years to collect any tax due.  My advice on how to handle them is below, and is copied from my post above. Keep in mind that I am an IRS licensed Enrolled Agent with well over 40 years tax experience. I just may have a lttle more experience in dealing with the IRS than most people.

 

 

 

I really appreciate your help here.  All the advice from everyone is much appreciated.  😀

 

I'll make contact with both companies.