If a copy of 1099C has not been sent to the state, how would the state know?
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.
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.
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.
Yes
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.
AnswerWhen creditors cancel or "forgive" a debt they must send the debtor a 1099-C and also report it to the IRS. The IRS may consider the amount of the cancelled income taxable. Consult a tax professional.
It should. * Yes, and the debtor will receive a 1099C from the creditor, the amount shown on the form is considered taxable income under IRS rules and must be reported on the debtor's tax return as such.
"http://wiki.answers.com/Q/What_year_did_the_1099c_come_into_effect" 1796
No. It is highly doubtful that the bank did not send the notice as it is in their best interest to do so and also it is the law. The debtor could request proof that a 1099C was sent to them and it is almost a certainty that there will be proof.
Since no one can stop it, obviously CapitalOne can send you a 1099C for 2008. The curious thing is, why would it? The 10 years for carrying it on a credit report is up, and maybe CapitalOne looked at your credit report and found no bankruptcy, so some low-level cretin decided to send you the 1099. Or you went to a debt counseling place and renewed the debt. If you have done nothing to reinstate the debt, and it was included in the 1997 filing, send them a certified return-receipt letter asking them to withdraw the 1099 or face further legal action. Or have a lawyer do it.
If the debtor receives a 1099C the amount shown on the form is considered taxable income and must be reported on their federal tax return.