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

Re: 1099 Question-please help

I have not ignored the 1099. I filed it on last years taxes.

New Contributor
Posts: 94
Registered: ‎10-10-2012
0

Re: 1099 Question-please help

Hi, I recently did a lot of research on this as have a similiar situation. Apparently the IRS considers two triggering events to issue a 1099C either you settle for less than the amount due, or bank / collector gives up on collecting the account due to their internal processes and procedures. So if never settled the collector would have to give up on collecting the debt and or forgive and therefore reporting a balance would not be appropriate (at least in my and others opinion although some disagree)  Probably your best course of action is to dispute with the OC and or CRA based on the fact that you received a 1099 which can only be triggered by the lender canceling or forgiving the debt and yet they are still reporting a balance. 

 

Of course if falling off anyway in a couple of months may not need to.

 

In researching this I also found that it is a complex situation. Some consider the IRS 1099 completely seperate from the CRA reporting, which I disagree with, but no clear cut answer one way or the other., many different opinions on that. 

 

For more details you can review on IRS website publication 4681 which goes into extensive detail on 1099s for canceled debts.

 

Hope this helps. 

Starting Scores: 9/19/2012 EQ 613 / TU 526 / EX 543
Current Scores: EQ 716 TU 724 EX 724 Goal Scores: 700
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.