I received it for a loan that was supposed to be settled. The settlement company says it’s not settled on their end but I got a 1099c for it. They can’t tell me that if there is a settlement, do I need to pay back the settlement amount, or do I not need to pay it at all? If there is a settlement, and it’s not paid, what could happen? How does it affect my taxes? I’m so confused
whether the settlement company can still go after you for the unpaid amount is a legal question, not an income tax question. consult a lawyer. however, that form represents income - forgiveness of debt - that needs to be included on your income tax return.
in 2016, an IRS rule allowed debt collectors to file a 1099-C after 36 months of no payment.
As @Mike9241 stated above, We do not address legal issues, However, a 1099-C may represent a taxable income.
The 1099-C is forgiveness of debt, and it can increase your taxes.
The procedure below is not for home foreclosure forgiveness of dept like credit card debt.
To post a 1099-C
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