No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
I had a card charged off with Chase in 2013. I had a 3700 balance. in 2014 they automatically sent me, which i never received, a 1099c cancelling the debt. Not so much as even a settlement offer. So now I need to amend my return from that year. I read somewhere that what they did was in a gray area. I tried to call them the other day because this still shows as a CO on my report and I wanted to see if they'd take a settlement. I talked with a credit analyst from BOA and she told me it is haunting me. Has anyone tried to have their 1099 rescinded to make a settlement? I read that companies would automatically issue a 1099c if no payments were made for 36 months. They automatically issued it after 21 months.
@Anonymouswrote:I had a card charged off with Chase in 2013. I had a 3700 balance. in 2014 they automatically sent me, which i never received, a 1099c cancelling the debt. Not so much as even a settlement offer. So now I need to amend my return from that year. I read somewhere that what they did was in a gray area. I tried to call them the other day because this still shows as a CO on my report and I wanted to see if they'd take a settlement. I talked with a credit analyst from BOA and she told me it is haunting me. Has anyone tried to have their 1099 rescinded to make a settlement? I read that companies would automatically issue a 1099c if no payments were made for 36 months. They automatically issued it after 21 months.
You can only amend 3 years in the past unless its something like this so even if they cancel it or change it at some point you will not be able to amend the return to reclaim the taxes you paid. You can challenge the 1099c issuance and try to get them to completely reverse before you amend the return in the first place but you are going to need to see a lawyer most likely about doing so. In a settlement they will still issue 1099c for any amount they cancel but it would be in the tax year you make your final payment.
The chances of this getting rescinded are remote.
paying taxes on 1099 are almost always better deal than settle. If you get 1099 on 10k debt, if you in 25% tax bracket, you pay 2500. If you were insolvent at event date, file form 982.
I just got a 1099 this year from chase on 2010 charge off. Did not even try to fight it.
Remember that you may not be obligated to pay any tax based on a 1099c.
If you can show that you were insovent at the time of any cancelled debt, the cancelled debt is then exempted from tax obligation.
Insolvency means your total debts exceeded your total assets.
You chould consult an accountant before simply paying taxes based upon receipt of a 1099c.
Wasnt insolvent but also couldnt get an equity loan to pay off the stuff.. vicious circle. lol