Why do o have 2 1099c for 1 auto repo

[believ3bee]

My car was repo'd with a balance of 10g. It was sold for 6g and i had a deficiency balance of 4g. I settled and paid 2700 and was forgiven for the 1300. Now I have 2 1099c from the same lender one for 10g and one for 1300 why is that and do I have had to add both since technically the car was sold. 

[MichaelL1 · Accepted solution]

You need to talk to the Lender about the 1099C for the $10K, as the amount actually forgiven was only $1,300.

You need a letter that it is incorrect, and they need to notify IRS that the 1099C for the $10K is in error.

You will report the one 1099C for the $1,300, however make sure you have the documentation to send to IRS (only if asked, do not send it with return filed) about the 1099C for the $10K.

[believ3bee]

I spoke to the lender and they said they couldn't help me that I had to ask my accountant.

[MichaelL1]

Write the lender a letter and tell them they have an error it needs to be fixed.  Go in detail as to why this is an error, and keep that letter in your tax file.  Send the letter to the President of the company and tell them you are going to file a complaint with the Better Business Bureau, the State Atty General and whoever to get their attention. They made an error and it is going to cause a letter from the IRS.  I would consider buying the Audit Protection when you file and ask the lender to pay for it.

[believ3bee]

thanks this was very helpful i spoke with them and said that they had no record of the 10k paper and that i had to fax it over to them and give them time to look into it.