Bank of America Home Loans Formerly Countrywide Home Loans Fraudulent 1099-MISC Reportying Simi Valley, California
Bank of America Home Loans (formerly Countrywide Home Loans) issued at 1099-MISC to the IRS for $2,000.00. First, I never received $2,000.00 (i.e. a check) from Countrywide, nor did I receive the 1099-MISC. Now, the IRS wants to charge me penalties and taxes on $2,000.00 I never received.
2 Updates & Rebuttals
Robert
Irvine,California,
U.S.A.
Not enough information.
#3Consumer Comment
Fri, October 08, 2010
1099-MISC can be issued for many reasons, and it does not mean that they have to send you a check.
One possibility is if you did any sort of "settlement" on your loan. For example if you owed $5,000 and they said that they would "settle" for $3,000 the $2,000 that they forgave would be reported to the IRS as unearned income.
Another possibility is that they may have also issued one if you did some sort of modification or principal reduction. Basically any action where they have to "write-off" some of the loan would be a case where they would in turn issue you a 1099-MISC.
They should have told you the Tax year it was for, and from that you may be able to figure out what it may be from.
Flynrider
Phoenix,Arizona,
USA
Loan mod?
#3Consumer Comment
Fri, October 08, 2010
Did you have any dealings with them where they forgave a portion of a loan through negotiation? If so, that could be where the 1099 is coming from. If a bank lets you off the hook for all or part of a loan, your friendly IRS sees that as income and requires the bank to issue a 1099 to that effect.