Re: I need to know about settling on a account and the IRS
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Posted by LadynRed
(199.91.33.254) on February 07, 2003 at 11:55:17:
In Reply to: I need to know about settling on a account and the IRS posted by jen on February 07, 2003 at 11:00:40:
Amounts 'forgiven' of $600 or more are reportable to the IRS IF they issue you a 1099-C 'cancelation of debt income'. If they do NOT issue a 1099-C, then the balance gets sold to a CA and you end up paying it anyway. The tax on $600 added to your gross income would not be much, so it would be a better to bite that bullet than let a CA shoot you with it later.
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