In 2005 I had a vehicle stolen. My insurance paid the “value of the vehicle” to the lender, however there was $1,000 not paid. After much back and forth with the insurance agency and the lender the lender decided to write off the debt.
Now January 2013 I received a 1099 for the year 2012 from the lender in the amount of $1,000.
Should I ask that the 1099 be back dated to 2005 when my income bracket was lower than now?
Is there any way I can fight this 1099?
Is there a special form I need to fill out so it will reduce the amount of taxes I have to pay on this old written off debt?
The key question here is in what year did the lender make the decision to write off the debt?
I think this previous posts will help you. See How to Deal With a New 1099-C Issued on Old Debt Using Little Known IRS Form 4598.
Please post your responses and follow-up messages to me on this in the comments section below.My Car Was Stolen and I Got a 1099 for the Amount Written Off. - Darrin by Steve Rhode