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Established Member
lemers718
Posts: 22
Registered: ‎11-21-2008
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1099 Question-please help

I have a charged off Capitol one account from 2006 . The orginal charge off amount was $1825. Of course Cap one reports every month and it is now on my report for almost 5K. Question is I received a 1099 on this account last year  for $1580 and filed it on last years taxes. But Cap one is still reporting every month at a higher amount..

Shouldn't this show up as a "0" balance or atleast have been decreased by the amount cancelled?

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llecs
Posts: 32,881
Registered: ‎08-04-2007
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Re: 1099 Question-please help

IMO, they should have. I'd call them to start.

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Shogun
Posts: 12,952
Registered: ‎04-15-2011
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Re: 1099 Question-please help

If they sent you a 1099 then they should be done with the debt.  They took it off their taxes and now it seems like they are trying to double dip.  It should report as $0 owed, not increasing monthly.  I would contact them on this matter, good thing is, it's old and won't be on much longer.  Good Luck!


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Established Member
lemers718
Posts: 22
Registered: ‎11-21-2008
0

Re: 1099 Question-please help

My CR is showing a fall off date in January. Should I just leave it alone? I am just anxious to get these baddies off my report.

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Shogun
Posts: 12,952
Registered: ‎04-15-2011
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Re: 1099 Question-please help

IMHO, if they sent you a 1099, it's been settled.  Let it fall off. 


Starting Score: 504

July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+

Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
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Frequent Contributor
scarrollprint
Posts: 382
Registered: ‎06-26-2012
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Re: 1099 Question-please help


Shogun wrote:

IMHO, if they sent you a 1099, it's been settled.  Let it fall off. 


Report wise I agree.

 

Tax man wise I HIGHLY disagree.

 

If they then go and RE-chargeoff this debt which they may or may not be trying to do (most likely due to a glitch) then the IRS will assume OP is guilty and will have the burdon of proof that this is not a new debt that was since charged-off and unrelated to the old debt. Do you have all paperwork and proof? Fighting this with the IRS would most likely trigger an audit which can create even more headaches.

 

Since they sent you a 1099 for less than what was origionally owed I'm assuming you settled the debt with them or a CA at some point?

 

Either way since you did recieve a 1099 as far as capital one is concerned you don't owe them a dime - you may owe someone else who bought it, but not them.

 

I would not ignore this. I would contact Cap 1 and remind them that they charged off this debt already and thus they can no longer keep increasing the balance and that it should be $0 considering they deducted it from their taxes already (you may need to fax them a copy of the 1099 they sent you). Hopefully they can fix whatever glitch it is now rather than you try to get it fixed if it accidentally does get re-charged off with the IRS.



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RobertEG
Posts: 17,456
Registered: ‎03-19-2007
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Re: 1099 Question-please help

I dont see that the fact of their having charged-off the debt is relevant.

Their charge-off merely moved the debt to a different portion of their accounting ledger, thus enabling them to reduce their reportable assets.

It did not relieve a dime of debt owed by the consumer, or their continued ability to attempt to collect on whatever is authorized under the account agreement.  The issue appears to be one of settlement of the debt.

 

What is confusing is their reporting of the consumer having settled for less than the full amount, which is what triggers IRS involvement, with the difference between the debt and the lower settlement being considered by them as income to the consumer. 

 

If the creditor is still reporting a balance owed, that would appear contradictory to initiation of a 1099.

Established Member
lemers718
Posts: 22
Registered: ‎11-21-2008
0

Re: 1099 Question-please help

Yes I have all the paperwork. All my statements and the  1099. I have not made a payment since 2007 and never offered to settle the debt.. It is still in Cap one's hands. 

Established Member
lemers718
Posts: 22
Registered: ‎11-21-2008
0

Re: 1099 Question-please help

What is Re-Chargeoff?

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scarrollprint
Posts: 382
Registered: ‎06-26-2012
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Re: 1099 Question-please help


lemers718 wrote:

What is Re-Chargeoff?


it would be a big no-no. Its not really anything other than them charging off the same debt twice.

 

Since you have not settled or paid a dime on this, they may actually then (thinking out loud here) could possibly - maybe - charge off a new amount (the difference between what was charged off before and what is now owed).

 

If it was settled for less and they charged off the rest, then tried to add more after the fact and then charge off the full amount again that would be a big no-no both in accounting practices as well as tax purposes.

 

Either way I would contact Capital one since they clearly charged off something with the IRS - ignoring it won't help

 



Current: Eq- 624 Ex - 631 (lender pulled) TU - 661 (lender pulled)
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