Triad Financial Corp claiming to have given me 10,000 Huntington Beach California
we purchased a 2000 ford windstar van, I became very ill and unable to work had triad pick up vehicle, made payments then settled on a settlement price in 2005. As of to date Triad has informed IRS that they gave me $10,000. There has never been any ten thousand dollars issued to me nor my wife.
Is this their way of evading taxes on their end. They are trying to rp me off for something I never received!! Never known a finance company give money to a consumer on a repo. And now IRS states I owe for this monies received and I never reported to them which is a straght lie by Triad Financial
Fredrick
bloomington, California
U.S.A.
3 Updates & Rebuttals
Mb
Alle,Texas,
U.S.A.
I stand corrected Robert,
#4Consumer Comment
Thu, June 12, 2008
I stand corrected Robert,
The point I was trying to make to the OP was that the finance company was not trying to evade taxes nor was there an implication that "Triad Financial Corp claiming to have given me 10,000 "
I will be sure to use proper wording when responding in the future.
Robert
Buffalo,New York,
U.S.A.
Incorrect.
#4Consumer Comment
Wed, June 11, 2008
""They are not evading taxes What they have done is report the amount of the charge off/amount you still owe them to the IRS as income. ""
Incorrect. A charge off is not imputed income. What they are reporting as imputed income for you is the amount of the loan that they have FORGIVEN. It's settled. The balance cannot be collected because it is no longer owed. A charge off is NOT a statement of forgiveness-the debt is NOT absolved.
""When you do a voluntary repossession, you are still responsible for the amount of the loan.""
That WOULD be the case if a 1099 HAD NOT been filed. By filing a 1099 and reporting the remaining balance as imputed income for the debtor, the balance of the loan ($10000) is forgiven and is no longer owed.
""If you do not pay it in a timely manner , they report the amount to the IRS as earnnings. ""
INCORRECT. What they report is the amount remaining of the loan that has been FORGIVEN and is NO LONGER OWED. NO ONE can legally attempt to collect on this debt because it no longer exists. You should have received your copy of the 1099 reporting this imputed income. KEEP THIS COPY FOREVER! IF anyone ever comes to you in the future to collect this money, your copy of the 1099 is your PROOF that the loan has been absolved.
""This is commonly done and completely legal.""
NOT they way you explained it. Many folks confuse charge-off as being forgiven and no longer collectible-utter rubbish. A 1099 is NOT filled for a "charge-off" or "write-off." It's when a creditor FORGIVES the debt or FORGIVES A PORTION of the debt that the debt is absolved and then the creditor reports the FORGIVEN MONIES as imputed income to the IRS. It is the filing of a 1099 for imputed income that memorializes that the debt is absolved and is no longer collectible.
I'm not splitting hairs. The two are not the same. I have explained this in other RORs.
Mb
Alle,Texas,
U.S.A.
They are not evading taxes
#4Consumer Comment
Tue, June 10, 2008
What they have done is report the amount of the charge off/amount you still owe them to the IRS as income.
When you do a voluntary repossession, you are still responsible for the amount of the loan.
The car company sells it at auction, and the difference in what you owe versus what they got is now owed by you.
If you do not pay it in a timely manner , they report the amount to the IRS as earnnings.
This is commonly done and completely legal.