Re: IRS

Posted by mk_378 (128.173.39.4) on July 07, 2004 at 14:23:38:

In Reply to: Re: IRS posted by computerguy on July 07, 2004 at 08:10:14:

It's only reported if you settle and pay less than the full amount. Then the forgiven amount may be put on a 1099c. This is actually good for you because it is proof that the remaining debt is truly forgiven. If a 1099c is not issued, often the remaining balance is sold to another CA, and the harassment begins again.

You do not have to pay taxes on the 1099 amount if you are "insolvent" according to IRS definition, which I assume most people with unpaid debts are.

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