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Do you have to file a 1099c for credit card debt that was discharged in chapter 7 bankruptcy?
The debtor does not "file" a 1099C. The debtor may receive a 1099C from the creditor which also sends it to the IRS. The discharge of the debt in bankruptcy nullifies the 1099C. There is a form or a part of the 1040 set for disclosing this information to the IRS.
Does a 1099C mean the creditor has cancelled the debt?
Yes. A 1099C is confirmation from the creditor or lender that the debt has been cancelled and collection efforts have ended. The bad news is, the amount shown on the 1099C is considered taxable income and must be claimed on your federal tax return.
If you had a credit card debt of 14000 and settled and paid off half of that amount and received a 1099c for the other half of the amount not paid how does this affect your filing of taxes?
The amount shown on the 1099C is considered taxable income under IRS regulations and should be reported as such when filing ones tax return.
Do you owe the difference on a 1099C?
See my answer to post on "collections after 1099c???" Do you mean owe the difference to a creditor? Answer no 1099c is a confirmation that a debt has been canceled by the creditor. No further obligation of repayment by debtor is expected or can be requested. This may be income to you according to the IRS whom also gets a copy of the 1099c.
Can I not report 1099c on Massachusetts state tax?
If a copy of 1099C has not been sent to the state, how would the state know?
How do you get a 1099c?
See my answer to post "Collections after 1099c???" A creditor will send you, the debtor, (and the IRS) a copy if they have decided to cancel (forgive) your debt by issuance of a 1099c which means they will give up their right to any further collection of this debt.
Do you have to file a 1099c for credit card debt that was discharged in chapter 7 bankruptcy?
The debtor does not "file" a 1099C. The debtor may receive a 1099C from the creditor which also sends it to the IRS. The discharge of the debt in bankruptcy nullifies the 1099C. There is a form or a part of the 1040 set for disclosing this information to the IRS.
Does a 1099C mean the creditor has cancelled the debt?
Yes. A 1099C is confirmation from the creditor or lender that the debt has been cancelled and collection efforts have ended. The bad news is, the amount shown on the 1099C is considered taxable income and must be claimed on your federal tax return.
If you had a credit card debt of 14000 and settled and paid off half of that amount and received a 1099c for the other half of the amount not paid how does this affect your filing of taxes?
The amount shown on the 1099C is considered taxable income under IRS regulations and should be reported as such when filing ones tax return.
Do you owe the difference on a 1099C?
See my answer to post on "collections after 1099c???" Do you mean owe the difference to a creditor? Answer no 1099c is a confirmation that a debt has been canceled by the creditor. No further obligation of repayment by debtor is expected or can be requested. This may be income to you according to the IRS whom also gets a copy of the 1099c.
You bought a vehicle in 2002 but in 2008 you settled with the bank for less that what was owed to keep the truck do you have to claim the difference on your taxes with the 1099c?
Yes, unless 1) The "no" box was checked on the 1099-C under "was the borrower personally liable for repayment of the debt?" 2) The debt was discharged as part of a bankruptcy. 3) You were insolvent at the time the debt was discharged. or 4) The indebtedness was qualified farm indebtedness.
I filed a 1099c for debt and the account was sold to a new creditor do I have to pay?
You mean you received a 1099C right...you had (cancellation of debt)income because you had a bankruptcy or failed to pay what the persdon issuing it to you had loaned you. In any case, no matter what the circumstances, the facts haven't changed....just the name of who you owe that debt to. That doesn't change anything about your accounting, taxability or reporting obligation.
Do I have to claim a cancelled debt in 08 as income on your taxes if it was for a second mortgage?
I had a debt settled in February of '08. The debt was settled for the amount they proposed and the amount of debt cancelled was for $ 12,153.04. I received a Substitute form 1099-C Cancellation of Debt. However, it was for a 2nd mortgage and I was unemployed during the months that I settled the debt. I am being told that laws put in place for 07 & 08 protect me from claiming this $ 12,153.04 as part of my income. Directly on the 1099C form it states... " DO not report a cancelled debt as income if you did not deduct it but would have been able to do so on your tax return if you had paid it. Also do not include cancelled debts in your income to the extent that you were insolvent. " Can you please tell me if I have to claim this as income in 2008? I thought Obama was allowing forgiveness in his mortgage stimulus for people who were able to get out from under these BAD loans! Which this one was??
If a lender purchases a debt and cancels the debt is there a time limit for a debt cancellation?
Cancellation of debts depending on individual circumstances can take a very lengthy time. When a debt is cancelled the creditor/collector is required to send a 1099C to the debtor and the IRS. A portion of the debt then becomes taxable income.
Collections after 1099c?
A 1099c is issued to a debtor and to the IRS when a debt has been canceled (or forgiven). Once a debt has been canceled (or forgiven) and a 1099c issued to the debtor and IRS, no further collection attempts shall be made. If they are, then the debt has not been canceled (or forgiven) and no 1099c should have been issued to the debtor or to the IRS. note: website: www.helpwithmybank.gov (under consumer loan-general questions section) which states that unless the bank forgave or cancelled the debt, you are still obligated to repay the loan. Also the IRS states that continued collection, the existence of a lien relating to the debt, or the sale of a debt by the creditor are direct indicators that a debt has not been canceled. note: website: www.IRS.gov pubication 525 and instruction for 1099ac for further info.The only entities that can issue 1099c are financial institutions (bank, trust company, building and loan or saving and loan associations), credit unions, federal govenment agencies, federal deposit ins. corp., resoulution trust corp, national credit union admin., any military dept., u.s. postal service, postal rate commission, a corp. that is a subsidiary of a financial institution, or an organization whose significant trade or business is the lending of money, such as a finance co., or credit card co. The average person or company not included in one of these entities can't provide a 1099c to a debtor or the IRS irregardless of monies owed to them by a debtor.A 1099c can be issued on an unpaid debt for the entire balance that is due at the time of issuing the 1099c or for the canceled portion of the debt when a debt settlement has been agreed to. Example: $5000 owed, debt settled for $2000, debt canceled is $3000. This $3000 would then be on the 1099c. Since you didn't have to pay this $3000 to the creditor the IRS considers it to be income to you unless you qualify under a few exceptions like insolvency, a dismissal of the debt in a bankruptcy filing, or it was a gift on behalf of the creditor. See above IRS website for more info.Any entity issuing a 1099c to the IRS must send a copy to the debtor. A 1099c doesn't show up on your credit report and you wouldn't know unless they sent you a copy of it as required by IRS laws. You can call the IRS to see if they have received one for you if you have concerns that they have. You can call the creditor and ask if they issued one. They must tell you and keep these records for 4 years from time of issuance according to IRS law. IRS law and banking laws govern this.Also, a charge off and a write off are different from a 1099c. A charge off or write off (pretty much same thing) is done for creditors internal accounting procedures and do notrelease your obligation to pay a debt nor does it prohibit creditor from sending account to collections agency or selling account to debt buyer. Charge off's (write off's) does not require a creditor to issue a 1099c to debtor because they are not releasing you of your obligation to pay the debt nor are they given up their rights to collect on the debt but they are merely making an accounting adjustment on their books. Nor can a debtor demand a 1099c. Why? Because a creditor that issues a 1099c to debtor is thereby canceling the debt and not requiring any further payment on the debt and will no longer try to collect on the debt as of the date of the debt being canceled (which is shown on the 1099c).If you are contacted for payment on a debt that has been been previously canceled because you have received a 1099c reflecting such you should provide copy of 1099c for proof and assert you knowledge of the law and refuse to pay anything further and demand no further collections be made. All of this should be in writing and sent certified mail to company trying to collect. Keep copies of all for proof. If you are contacted again call a consumer lawyer in your area. They are just waiting for a good lawsuit to file and work on a contingency basis so you will not need money to hire them.Also, if you have been through bankruptcy or in process of, all your debts should be listed and eventually dismissed by bk court. When debts are dismissed through bk you no longer owe them and they are not taxable to you. Send any further collectors this information in writing with bk case number and 1st page of bk doc and demand no further attempts to collect be made. Put in writing and keep copies and certified mail for proof. If attempt is made again call consumer lawyer. If you have any problem with IRS and 1099c after bankruptcy send IRS letter and copy of 1st page of bk doc. If lawyer handled your bk then they should handle any problems that arise after.
Borrower personally liable for repayment of debt?
i have 1099c 2- amount of debt canseled 5- if checked, the debtor was personally liable for repament of the debt (x) 7- fair market value of property that mean that i suppose to pay any amount?
If you've settled a debt with a credit collection agency can the original creditor buy back the account and try and charge you again?
No ... you have the proof that the debt was settled.
