|
|
CC Debt, Charge-Offs, IRS & 1099-C
[ Follow Ups ] [ Post Followup ] [ Credit Forum Index ]
Posted by jeje00
(12.228.1.206) on February 10, 2003 at 14:35:30:
In an earlier string there was a conversation about whether a collection agency could report charged off amounts to IRS as income. According to the experiences that I've had in the past, they can. I had a charged off credit card account with Citibank. Long after the charge-off, I settled the account for less than I owed. The collection agent explained that there could be an IRS issue. When I received confirmation of the settlement, the letter clearly stated that if the difference between what I owed and what I settled for totaled $600 or more, the amount would be reported to IRS as taxable income. Last year, I settled a charged off debt for a Providian CC account with Midland Credit Management. The same thing occurred. The confirmation letter clearly stated that if my settlement amount was for $600 or more below what I owed, it would be reported to IRS as taxable income. In each case, I'd settled for just under $600 less than what was owed and nothing was reported to IRS. More Info
1099-C FACTOR!: Did you know that a charge off is considered income? You need to know this information because it can be considered income.
(http://www.carreonandassociates.com/Cancelled%20debts%20&%20the%20IRS.htm)
Follow Ups:
Post a Followup
|
