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Writing off or charging off a debt is an accounting entry to acknowlege that the asset they have (the loan) is not performing and that investors/readers of the financials, should not consider it valuable. Again, it is a required accounting entry - it does not effect your debt to them, discharge it or reduce it in any way. You still owe. And they will...in fact must (to satisfy those same investors and regulators that read those financials), try and collect it or get some value for it. It doesn't effect the taxability. However, IF a company discharges or dismisses the debt, then the amount of debt discharged IS taxable income to you. You should receive a 1099-C reflecting it.
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What would happen if you did not pay taxes?
The government has various means of enforcing its laws, and forcing people to pay taxes. Some people go to jail for tax evasion. Of course, there are also people who do not pay taxes because they are not required to pay taxes. If you have no money, you pay no taxes. Or, if you have quite a lot of money, you may have various tax write-offs and accounting schemes, offshore bank accounts etc., which also allow you to pay no taxes. It is only the middle class which tends to have no way to legally avoid paying tax.
How long do charge offs stay on your credit report?
Charge offs will stay on your credit report for 3 to 7 years
How do you remove charge-offs from your credit report?
First of all, charge offs cannot remain on your credit report for longer than 7 years so most credit bureaus remove them after 6 years 9 months to ensure proper compliance with the law. Secondly, it's possible that those charge offs are not yours and/or that the companies in charge of the charge offs have lost the records so it is possible, although unlkely, that you can get the charge offs removed by disputing them with the credit agency. Another possibility is that one company shows the charge off and the collection agency shows an open collection. You should be able to get one of those two eliminated as they are duplicates. Finally, it is possible to contact the companies that have made the charge offs and negotiate with them to remove the charge offs in exchange for paying part or all of the charged off amount. Some companies may gladly do this whereas others will not even consider it. You could initiate conversations with the debt holder by writing a letter to the address on your credit report basically offering to pay a portion of the debt in exchange for complete deletion of the negative credit entry. In conclusion, it's better to avoid charge offs and negative credit by paying your bills on time than to try to clean up your credit report afterwards.
Does the estate pay taxes?
Estates pay taxes on income and may have to pay inheritance taxes.
How do you remove charge offs credit report?
Dispute them with the credit bureaus.
Should you still pay charge offs if its been longer than 2 years?
Yes defiantly.....
How bad do charge offs hurt your credit report?
IT CAN HURT YOUR CREDIT DRAMATICALLY! CALL YOUR CREDITOR AND ASK TO PAY THIS CHARGE OFF IMMEDIATLY WHEN YOU ARE ABLE TO FINANCIALLY.
How should you go about purchasing an auto with a judgment and 2 charge offs on your credit?
Buy a cheap one and pay cash.
What would happen if you did not pay taxes?
The government has various means of enforcing its laws, and forcing people to pay taxes. Some people go to jail for tax evasion. Of course, there are also people who do not pay taxes because they are not required to pay taxes. If you have no money, you pay no taxes. Or, if you have quite a lot of money, you may have various tax write-offs and accounting schemes, offshore bank accounts etc., which also allow you to pay no taxes. It is only the middle class which tends to have no way to legally avoid paying tax.
How long do charge offs stay on your credit report?
Charge offs will stay on your credit report for 3 to 7 years
How can a small business not have to pay corporate taxes?
The only way to avoid paying taxes is to change the laws that govern the tax code. You might qualify for exemptions and/or write-offs. http://www.irs.gov/businesses/corporations/index.html
Is it more important to pay off your collections or your charge-offs first?
BOTH! that more important. You dont want get into mess of Credit. Good luck
Do you have to pay taxes when selling a car in Canada?
no no you do not. Mexicans will buy it cheaper and they wont charge tax.
What are charge offs?
Charge offs are accounts that have been written off by the creditor as uncollectable. The debt owed is still valid and can be collected on either by the original creditor or by a collection agency. You can only erase charge offs by disputing them to the credit bureaus or negotiating the removal by the original creditor.
Can you rid charge offs on your credit report if that creditor was included in your bankruptcy?
The charge offs will remain the required seven years and should be noted as included or discharged in bankruptcy.
What is the difference between write offs and write downs?
Write offs are things you can get rid of with taxes. The write down's will have to be dealt with by accounting in the budget.
How do you remove charge-offs from your credit report?
First of all, charge offs cannot remain on your credit report for longer than 7 years so most credit bureaus remove them after 6 years 9 months to ensure proper compliance with the law. Secondly, it's possible that those charge offs are not yours and/or that the companies in charge of the charge offs have lost the records so it is possible, although unlkely, that you can get the charge offs removed by disputing them with the credit agency. Another possibility is that one company shows the charge off and the collection agency shows an open collection. You should be able to get one of those two eliminated as they are duplicates. Finally, it is possible to contact the companies that have made the charge offs and negotiate with them to remove the charge offs in exchange for paying part or all of the charged off amount. Some companies may gladly do this whereas others will not even consider it. You could initiate conversations with the debt holder by writing a letter to the address on your credit report basically offering to pay a portion of the debt in exchange for complete deletion of the negative credit entry. In conclusion, it's better to avoid charge offs and negative credit by paying your bills on time than to try to clean up your credit report afterwards.
