Something does not make sense and suggest calling Santander to understand what is going on
If the dealer paid the loan off, including the missing payments in full, there should be no 1099-c
But if the dealer “cut a deal” with Santander to pay less that what was due in return for sending the title to you, that difference is taxable income to you. From what you are explaining sounds likely this occurred
But then again, maybe Santander made a mistake!
Best to call them and understand why they issued the 1099-c. If you agree they were correct, it is taxable income to you.
