Quick Answer: To determine if a 1099-C was issued after foreclosure, homeowners must contact the bank directly or assume the IRS was notified as required by law. The Mortgage Forgiveness Debt Relief Act of 2007 may allow exclusion of cancelled debt income on principal residences, making professional tax consultation essential.We had a house go into …
Quick Answer: Dell debt collection can persist beyond typical statute of limitations periods, as shown by this 8-year case involving mistaken identity and improper 1099-C tax forms. The debtor should dispute the fraudulent 1099-C with the IRS using Form 4598 while documenting all evidence of the mistaken debt.“Dear Steve,I have been hounded by Dell computer …
Quick Answer: A charged-off debt means the creditor wrote it off as a loss, but the debt remains legally collectible even after receiving a 1099-C tax form. Paying taxes on forgiven debt income does not settle or discharge the original debt obligation.“Dear Steve,I have 2 credit card debts that total $30,000 that have not been …
Quick Answer: Receiving a 1099-C form does not legally discharge debt, and creditors can still pursue collection even after issuing the form. The recent Third Circuit case In re Bononi confirmed that only a formal bankruptcy court discharge actually eliminates the debtor’s legal obligation to pay.A recent posting, “An IRS 1099-C Form Does Not Mean …
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