How to Deal With a New 1099-C Issued on Old Debt Using Little Known IRS Form 4598

It seems more and more people are getting tax form 1099-C issued now for the forgiveness of old debt from as long as twenty years ago. That’s a problem for consumers. This old debt is sometimes called “zombie debt” because it appears to come back from the dead. The first thing you should do is … Read more

Portfolio Recovery Associates Sent Me a 1099-C I Should Never Have Received

Question: Dear Steve, In 2003 I opened a USBank Checking account which included a Credit Card and Line of Credit. In 2009 became unemployed and defaulted on debt. USBank stopped collection in and discharged the account 2010 but did not send a 1099-C. Portfolio Recovery Associates purchased a record of the discharged account from USBank … Read more

The IRS Sent My Payment Back Because of a Erroneous 1099. What Now? – William

“Dear Jim, Filed 1040A early & got my refund. Received a 1099-DIV form later in April. The form was showing an amount that was slightly too high. In order to avoid interest charges, i went ahead and made a payment calculating the tax i would owe using the current 1099-DIV form by April 15. I … Read more