Have you claimed the unpaid debt as income in any prior tax year, or formally had the debt reported in the 1099c declared as non-taxable by the IRS?
You have the age-old issue of whether a 1099c totally cancels the debt, and thus requires update of the account balance to $0.
Whether you paid taxes, convertng the amount from a debt to income, has relevance in resolution of that issue.
As for credit reporting, what is the reported DOFD on the debt?
