I received a bill from the IRS for a 1099-C that was issued by Capital One Bank. The debt was charged off in 2005, but the 1099-C issued was dated 2013.
The charge off is no longer on my credit report but I made a copy while it was still being reported so I have proof of the date of the actual charge off. Capital One reaged the debt.
Capital One Bank took their tax break in 2005 and now re-issued a 1099 for the same account which will result in another tax break. Not sure how to handle the IRS notification that they claim I owe.
I know 1099 forms must be issued the same year debt was forgiven.
Kar Ben
Arcade,#2Author of original report
Fri, January 23, 2015
Cap One, who assigned debt to junk debt buyer in 2003, issued a 1099-C on debt that was disputed. Can they just issue 1099-C's and charge as income when debt was never verified?
Kar Ben
Arcade,#3Author of original report
Fri, January 16, 2015
Received a collection letter from junk debt buyer regarding this debt in 2003. I requested debt validation, but never heard back from them. Cap One is now issuing a 1099-C as the original creditor?
Striderq
Columbia,#4General Comment
Wed, January 14, 2015
The way I explained the chargeoff vs debt forgiveness in my last post is exactly how the programs work. If you have proof to the opposite, please post it.
And you're wrong in your assumption. I don't work for and have never worked for Capitol One. Just thought I'd try to explain what happened but you seem to have taken offense at that. Oh well, that (like the tax liability) is on you not me.
Kar Ben
Arcade,#5Author of original report
Wed, January 14, 2015
Wrong. Don't like dealing with bottom feeders. Cap One "employees" should really learn how to spell.
Striderq
Columbia,#6General Comment
Wed, January 14, 2015
The debt forgiveness would actually show as account paid. The way it works is you pay a percentage and then the currect owner of the debt "forgives" the remainder. They report it as account paid or account satisfied. However, for a debt forgiveness to be reportable it has to be at least $600. For it to cause as big an impact on you as you claim, the amount forgiven had to be rather large.
Kar Ben
Arcade,#7Author of original report
Tue, January 13, 2015
Oh for crying out loud, has anyone ever seen "debt forgiven" on their credit report?? Since when do sleazy banks and collection agencies forgive debt? They charge off debt then get a tax break for that year.
To clarify, I just received a notification from the IRS about a 2013 1099-C from Cap One. I never received a 1099 from them which was suppose to have been filed with last years taxes. The IRS wants a lump sum paid by the first week of February.
I have never received a form from the IRS that wasn't for the current tax year which is why these crooks reage and collect more tax breaks.
Striderq
Columbia,#8General Comment
Tue, January 13, 2015
A charge off is not the same as debt forgiveness. A charge off takes it off of their books but you still owe the money. Debt forgiveness means you no longer owe the debt. So it could easily happen, legally, that it was charged off in 2005 but forgiven in 2013.
But why wait a year to complain about this???