I recently received a communication from you indicating that if I did not pay you money to satisfy what you claim to be my debt to you for the above stated account, that you would send me a Form 1099 and report this non-payment to the IRS as my income.

Please be advised that imputed income can only be reported when there has been a settlement arrangement and a failure of payment according to its terms, and only when money was actually lent. If you carry out this scheme, my CPA will provide expert testimony that I was the depositor in this account and that you owe me the return of my deposit (credit limit). You will not have lost any money because you lent me nothing. When the account was opened, you entered a dollar amount of credit in my name but that money did not come from you or other depositors. That money came from my promise to pay. You created currency that never existed before the account was opened. This account is my receivable, not yours. If you wish to make false statements to the Internal Revenue Service, I will file a complaint with the Criminal Division of the Inspector General's Office at the IRS and hold you liable for all damages I might incur from such false statements.

I am willing to forgive the return of my deposit provided that you discontinue your attempts to collect what you claim to be owed, and this includes reporting to the IRS.

Best regards,

[Subscriber

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