1099c Help

[Anonymous]

I have 3 seperate accounts that were reported as charge-offs over 5 years ago. I recieved 1099c's for all three over 2 years ago. I filed them on my tax return and ended up paying an arm and a leg in taxes. The OC's are the only ones reporting by the way. But all the accounts are still showing a balance, can they do that??

[guiness56]

No, you still owe the debt.

A 1099-C is information for the IRS. The creditor is telling the IRS they don't think they will ever get paid the money owed them and they won't file taxes on it.  The 1099-C shifts the tax responsibility to you. 

If you pay them down the line, they have to issue a corrected 1099-C and you would then ammend your tax return.

[Anonymous]

thanks for the quick reply...