Re: charge off- impact on taxes?
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Posted by Why Chat (126.96.36.199) on June 04, 2004 at 17:57:03:
In Reply to: charge off- impact on taxes? posted by anon on June 04, 2004 at 02:55:40:
If the"lawyer" is legit., (which I doubt) he/she will be licensed in your State as a credit repair agency.
If you are able to negotiate a settlement with the ORIGINAL CREDITOR before chargeoff,they will issue you a 1099C for the forgiven debt. This amount is taxable income to you for the year in which the settlement was reached.
A collection agency can not issue a 1099C, and the poster who claimed a 1099C can be sent years later from an account that was charged off, but not "settled" is mistaken,unless it is due to a legal settlement of a class action suit.
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