Thank you in advance for your help.
In 2002, my wife opened a credit card account in the state of Georgia. It appears that the last payment was made on that account at the end of 2002, but there was still an outstanding balance. She did not manage it well and in 2014, the company reported a cancellation of debt to the IRS via a 1099c. IRS is now trying to charge us for unreported income for that year. We were unaware of this action until recently.
It is my understanding that under Georgia law, cancellations of debt must be reported within a maximum of 6 years from the last payment. I have written to the credit card company asking them to either justify doing this nearly 12 years later or correct it, but have not received a response after several weeks. The IRS is saying that we owe them money unless we get the credit card company to correct it in writing.
I know the easiest way to handle this is by claiming insovlency, but not sure we could in 2014. Had the 1099C been filed closer to the time it should have, we would have been insolvent.
So we are at a standstill with no response from the bank. We have been through the ringer in the last decade with multiple family tragedies, business losses, losing our home and jobs....and now this. I know it's not relevant to the post but boy are we tired and feeling punched in th mouth even though it was of her doing long ago.
Thanks again for your insights...
