So you got a 1099c for way less than what the original amount was with the creditor? But they sent you a less then $600 1099c? Which is it?
@HeatherButtons wrote:Hello.
I got a 1099-C in the mail. The amount listed is less than.$600 - which I understand to mean the Creditor should not send one if less than $600.
Also... the amount is WAAAYYYY less than what was Canceled Debt showing on my Credit Report.
I called them and they are opening a dispute because I challenged them on the validity of the debt. It was for Tax Year 2021 so they already filed it.
I'm hoping it'll be more work than it's worth to them to correct it with the Federal and update my 1099-C.. and that they will just drop it. It's still showing as a debt I owe even tho they issued the 1099-C. And FYI.... it'll be 7 years in Apr 2024 so it would be due to drop off then.
Any thoughts or experiences with incorrect 1099-C??
I'm not a tax expert, but maybe a tax expert can advise: isn't it better for @HeatherButtons that they made out the 1099-C for less? Isn't that not something to dispute, since it might trigger a revised 1099-C for a larger amount?
I got one for $300 from Chase yrs ago for opening a checking account. I added it to my taxes because i burned the IRS to be safe.
The $600 is the mandatory must report 1099C line, that's not the minimum allowed. Also it may not reflect the amount on the credit report, they may have only discharged that amount. Hard to say without calling them but I wouldn't put my bet on sloppy acccounting on this one... I hope it works out at any rate but the official docs:
From the IRS 4681 publication:
Forms 1099-A and 1099-C.
A lender who acquires an interest in your property in a foreclosure or repossession should send you Form 1099-A, Acquisition or Abandonment of Secured Property, showing information you need to figure your gain or loss. However, if the lender also cancels part of your debt and must file Form 1099-C, the lender can include the information about the foreclosure or repossession on that form instead of on Form 1099-A. The lender must file Form 1099-C and send you a copy if the amount of debt canceled is $600 or more and the lender is a financial institution, credit union, federal government agency, or other applicable entity as discussed earlier in chapter 1. For foreclosures or repossessions occurring in 2021, these forms should be sent to you by January 31, 2022.
@HeatherButtons wrote:Happy New Year!
So I previously posted about a 1099-C I rec'd from OC. The amount in this tax form was $427. But the OC in my CR showed Balance as $1700+. Definitely an Accounting Error.
I previously tried to dispute with EX - and they found it as valid. No charge. So I submitted disputes with TU and EQ. TransUnion came back in 4 days in my favor! YAYYY!! Score went up 40 pts!!!
But haven't heard back from EQ or my re-dispute with Experian.
I read somewhere that if of CRA determines in your favor, then they other CRA will follow suit? Is that correct?
Or... if my submittrd dispute thru TransUnion sends the Original Creditor the inaccuracies and supporting documentation.. and their investigation determines that the information is INACCURATE (or they cannot suppport evidence showing it is accurate) then creditor is REQUIRED to report any change (balance to zero) or deletion to ALL CRAs to which they have also reported the information.
If the above in a correct statement ... how long before EQ and EX update?
Also... even tho TU updated the credit score, I'm still not seeing the amount as ZERO on MyFICO.
To the question in bold, the answer is no.
Last HP 11-01-2022
