Question regarding 1099C...computerguy's reply
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Posted by Rapidlygoinggray
(64.158.225.9) on January 18, 2004 at 10:57:17:
computerguy posted in reply to Parry on Dec 21, 2003 with a letter about 1900C. Am I confused in my understanding that if you arrange a settlement with a OC, you follow through with payment of that settlement according to the aggreed terms, then they CANNOT send you a 1099C and one to the IRS for taxes owed on the amount remaining after the settlement to be reported as "income?" I just received a 1099C from MBNA for Cancellation of debt. It says that they must provid the form if they cancel or forgive a debt of $600 or more. Then it says "Generally, if you are an individual, you must include the canceled amount on the "Other Income" line of Form 1040." Is this correct? I'm sorry, maybe I'm total misunderstanding computerguy's sample letter. The post was: http://www.cardreport.com/wwwboard/messages/29112.html
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