We got this letter claiming that the bank wrote off a car that was repossessed then resold by the bank. The letter says the irs considers this income since the bank wrote it off(?).
I’m not understanding why the bank taking and reselling the car then writing the rest off would result in us getting a letter saying we owe the full value of the car, especially since we don’t own or posses the car, and I’ve never heard of anyone having to pay the value of a repossessed car to the irs before. Is this legitimate?
