Errant 1099-C

[user17705090320]

Hi,

Recently I got a 1099-C in the mail, "Cancellation of Debt", recording a cancelled debt from a huge loan due to bankruptcy.  It is a copy sent to me (the "debtor") from a mid-west finance company.  Problem is that I never took out such a loan and have never been a customer of the company that they do finance services for.  At first I thought it was bogus or phishing, but the finance company does exist, so I called them and after some effort they agreed that I am not the party that took out the loan or co-signed anything, etc., or have anything to do with their parent company since my SSN and birth date don't match their customer account or loan records attached to my name and home address. They sent me a letter stating as much, and to basically ignore the 1099-C, and "sorry for the hassle" (more or less).  The form does not have my SSN on it,  but it does have a tax number (ITIN) that I have never applied for, and I don't know if that number exists with IRS and connected to my name and address.  

So my questions are:  (1) should I contact the IRS to inquire about that bogus ITIN, and how?  (2) Should I file a report with the FTC since it smacks of a fraudulent loan?  (3) Should I file a 14039 form (Identify Theft Affidavit) with the IRS?  I'm presuming that the IRS can't do anything with the 1099-C without my SSN on it, but I'm not sure because of that ITIN on the form.  Again, I have never requested an ITIN from the IRS.   On the other hand, who wants attention from the IRS if it's not necessary!  Thank you!

[pk]

@user17705090320 , all my red/ purple flags go up with this .

(a) I do not believe that any legitimate US entity is going to issue a loan based on ITIN --- which is generally only for purposes of filing a return OR identifying/ withholding  taxes on investment/ passive earnings of an NRA.  I find this very surprising

(b) In the process of confirming that entity's record of customer/client, you provided your SSN and DoB. Now that is available for usage.   What are they doing with that info ?

(c) Did they actually send a 1099-C to the IRS ?   Without your SSN , it does not get connected to your  IRS account -- so why did they send it to you?

For purposes of 2025 tax filing , you can ignore the whole 1099-C.  If IRS sees one with your SSN & name etc. then they will send you a notice--- you can then show them the letter from the entity.

However, because you have now exposed your  SSN, DoB, Name  and address ----- you need to watch out for  abuse of the information.   Just keep a careful eye on all things financial.

I may be totally and absolutely wrong and being paranoic ( and that this is perfectly  normal / legal entity ) but  there are so many tricks and games  out there  that I am leery of nay of these things. 

Is there more I can do for you ?

[user17705090320]

Thanks so much for the information and cautionary points, I appreciate the paranoia with the level of identity theft these days!   A couple of things help, I should have said first that during the phone call with their Litigation and Recovery supervisor, she asked only for the last four of my SSN and then my birth year.  There is someone's SSN and DOB on the loan, and seems my name and address on it (that's how I got the 1099 in the mail).  Full birth dates are pretty easy to find in public records with a name and address if she wanted it, but anyway what I gave her (last 4 and birth year) are the critical pieces of info, enough to establish that the account belonging to whomever took out the loan and then defaulted is not the person (me) who they sent the 1099 to.   This is why I suspect someone has hijacked my identity for the loan with at least my name and address, thus they sent the 1099. Pretty shoddy loan validation if you ask me.  I'm able to surmise based on the company's name and "Equipment" in the Debt Description box on the 1099 that the loan is probably related to farm equipment, and bankruptcy was declared in March 2025. 

Thanks for confirming that the IRS can't tie me to this bogus debt without a valid SSN.   The ITIN is the main red flag loose end at this point--- the finance officer could not say if it is registered at the IRS under my name and SSN, only that it was with the account for the loan which has a different SSN and DOB from mine.  I checked my credit reports with the 3 main bureaus, there is nothing about the loan and my credit score is sparkly.  I went ahead and froze my credit reports.    What the finance company will do next, I do not know, or if they sent the 1099 to the IRS,and if they did whether the IRS will kick it back or whatever they do.  I take your advice to not file it with 2025 taxes.   I may separately follow up with the IRS about the ITIN, it seems inconspicuous enough just to see if I have one.  If I do, then I'll file the identity theft affidavit to get me disconnected from that tax number.

Thanks again!