Re: Reporting credit card debt to IRS?

Posted by LadynRed (66.20.107.167) on February 01, 2003 at 13:15:14:

In Reply to: Re: Reporting credit card debt to IRS? posted by anon on February 01, 2003 at 13:05:37:

I don't care WHAT they told you, they are WRONG !
The ONLY way that ANY part of the debt gets reported to the IRS and for which you'd get a 1099-C would be if they CANCELLED (forgave) the debt entirely - they won't do that, especially if the amount is large. Citibank will send it to a collection agency and they may sue you to get at least some of the money, but they will NOT just 'forgive' the debt. Charge-off does NOT equal 'cancellation' of the debt, it means THEY write it off and get a nice fat tax break for themselves.

They were well-trained in handing you a fairy story, and you bought it. Be prepared for them to do it to you again if you ever fall behind again.
My fiance had the exact same Associates card, now Citibank. Its been charged-off and a collection agency calls 5-6 times a day.

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