@ewwwDebt wrote:If you get issued a 1099 after an account is charged off does the 1099 issuer need to update the account with the credit bureaus? The account shouldn't show a balance, correct?
I called to settle this and the rep informed me they 1099'd the debt last year, and since I had moved out of state, I didn't receive the snail-mail notice they sent. Their rep said I could dispute the account, but I didn't see how that could help me. $8500 Charge off. 1099'd how much taxes would I owe?
No they would still show the balance owed. A 1099 doesnt mean its gone, there are multi court cases on this and SCOTUS has never decided it in one direction or another, neither has Congress. As far as taxes you would add it in as income and pay at whatever bracket you are in. If they 1099 this in 2021 and you have already filed your return you will need to file a 1040x to correct it.
