Debtor penalized by IRS for charged off accounts(form 1099)

Posted by Tia (199.35.157.215) on January 30, 2004 at 23:05:34:

I apologize if this message appears twice, I didn't see the first one I posted.

I was told today by a creditor that when they "charge off" an account over $600 they report it to the IRS and later I may be penalized for not paying taxes on the "charged off" amount I received because the IRS will consider that as income for me even though it was from credit cards or loans. The creditor mentioned a form 1099 or something like that which I should have filled out. Is all of this true, and how does this work for someone who was receiving ssi? I've never heard of this form or law before. The creditor also said that if I owe taxes to the IRS they will be able to garnish my SSI income without ever taking me to court. I'm wondering if this is why some creditors sue people who are on ssi or unemployed, because they know that although there is a limit to the hell they can take us through, there is no limit to what the IRS can do. Thanks Tia

Follow Ups:

Post a Followup