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After you file
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.
February 3, 2024
5:05 PM