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wm76006
New Member

1099c debt cancelation

1.    Are debtors allowed to send 1099c  after 51 month beyond the 36 month IRS required as a test period, which it passes the 7 year statute of limitation, and make the debts 8 years old?

2.      How does the iRS know the dates of these accounts, that they were  last reported on my credit report as a delinquent accounts?, although these accounts been removed from my credit report due to 7 years passes the statute of limitation.

 

3.       How would IRS verify my total debt liabilities with regards to the time of the none payment date reported? 

2 Replies
RichardG
New Member

1099c debt cancelation

Please check the code in box 6 of your form.  You may well have code H in the box.  

Code H — Expiration of nonpayment testing period. Code H is used to indicate that the creditor hasn't received a payment on the debt during a testing period ending on December 31, 2016. The testing period is a 36-month period increased by the number of months the creditor was prevented from engaging in collection activity by a stay in bankruptcy or similar bar under state or local law. This identifiable event applies only for a creditor that is a financial institution or credit union (and certain of their subsidiaries), the FDIC, the RTC, the NCUA, any other federal executive agencies, and any successor or subunit of the FDIC, the RTC, the NCUA, or a federal executive agency. 

If the creditor was prevented from attempting to collect the debt during those 51 months, the creditor is entitled to delay sending out the form.

The only information the IRS has concerning your debt comes from the 1099C.  If you feel the form is in error or this debt should not be included in your taxable income for 2016, I suggest contacting the creditor and your local IRS office.

okaychamp
New Member

1099c debt cancelation

Many thanks for your reply;

The code on box 6 is ( G ), the 51 month started from the charge off day last reported (09/2012), did not had a bankruptcy, nor judgment were took place, and never been reported on the credit report during all 7-8 years.

Credit Report:
         Credit report dated: ……………………………………….10/02/2012
         Credit Card charged off /Last Reported: ……….……… 09/2012
         Account History: Charge Off as of: ……………………. Jun 2008 to Sep 2012

1099c…….. Year 2016
Box 1 (Date of identifiable event): …………………….. 12/31/2016
Box 4 ……………………………………………..………..  Credit Card Debt
Box 5 (if checked, the debtor was personally
      liable For repayment of the debt ………………… .….… X
Box 6 (Identifiable event code :( ……………….….....… G
Box 7 (fair market value of property) ………….…..…… $0.00

• So does the creditor still entitled to delay sending out the 1099c form, even after 15 month from the original 36 month time frame without any payments or any other contacts occurs?

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