rescinding a 1099C

Anonymous · ‎03-01-2018

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 Has anyone tried to have their 1099 rescinded to make a settlement?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.

gdale6 · ‎03-01-2018

@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 Has anyone tried to have their 1099 rescinded to make a settlement?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.

Anonymous · ‎03-02-2018

Mine was same year with Chase. They never sent me a 1099-c. They sent me a settlement offer in August of 2017 and it basically said "if you don't take offer, look out for 1099-c around around January. Waited and waited. Never received. Checked IRS site under my info, never filed. Called other day (bc I honestly didn't have money for the settlement at that time but do now) and asked if it could still be settled and they honored the August one (10 percent). Then said I'd receive 1099-c for difference. So, obviously it really was never sent.

Anonymous · ‎04-13-2018

Update: emailed a goodwill letter to chase’s executive office. Debt was written off and still shows negative on my credit report. I wanted to see if they could do something for me. Talked to a lady and she said basically since they issued the 1099C there’s nothing they can do. They will not rescind it, they will not take a settlement since the 1099C has been issued, and they won’t adjust the way it reports to a more positive status. Basically told me oh well and go pound sand. And since this is now doing me harm it is now an actionable situation.

Filed a suit against chase for unfair business practices.

Anonymous · ‎04-14-2018

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.

Anonymous · ‎04-14-2018

I have no problem paying tax on a 1099C. I’ve done it with a half a dozen cards in the last five years. With every other one I’ve settle the debt and it shows as paid/settled on my report. This particular one with Chase shows as negative and charge off and never paid. I tried for a business loan from the bank and when they pulled my credit I had 3 things that needed to be addressed. I got two of them settled and the last one is this chase mess. The bank told me they can’t help me with this item out there being unresolved.

RobertEG · ‎04-14-2018

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.

Anonymous · ‎04-14-2018

Wasnt insolvent but also couldnt get an equity loan to pay off the stuff.. vicious circle. lol