(716) 677-3700

7. I got a 1099-C for a very old debt. Is that legal?

This is another tricky situation, and we have received numerous complaints from consumers who have received these forms for bills they had stopped paying on long ago. Creditors who follow IRS guidelines should send out 1099-Cs when debts lie dormant for three years and there has been no significant collection activity for the past year. Specifically, the IRS instructions for 1099-C state:

“The expiration of non-payment testing period. This event occurs when the creditor has not received a payment on the debt during the testing period. The testing period is a 36-month period ending on December 31.”

It goes on to say that the creditor can rebut this occurrence if “The creditor (or a third party collection agency on behalf of the creditor) has engaged in significant bona fide collection activity during the 12-month period ending on December 31.”

The problem is that if a creditor sends out a 1099-C years (or decades), after it’s supposed to, the responsibility falls upon the taxpayer to try to explain to the IRS why they believe it should not have been filed that year. Again, there is no specific form for reporting this kind of dispute. You’ll have to include an explanation and you may wind up arguing with the IRS to get it resolved.

I just recieved the 1099c that they called me about back a month ago its for $15000 what the hell... Now according to the IRS I OWE THEM TAXES ON THAT .. I cant believe I got a 1099c for debt that i owed back 10 years ago... I should have paid them

Watch it this isnt a scam this 1099 C thing is a mess I had it happen to me by this company last fall. They dont care there ruthless SOB but it happened just like it was told to me

7. I got a 1099-C for a very old debt. Is that legal?

This is another tricky situation, and we have received numerous complaints from consumers who have received these forms for bills they had stopped paying on long ago. Creditors who follow IRS guidelines should send out 1099-Cs when debts lie dormant for three years and there has been no significant collection activity for the past year. Specifically, the IRS instructions for 1099-C state:

“The expiration of non-payment testing period. This event occurs when the creditor has not received a payment on the debt during the testing period. The testing period is a 36-month period ending on December 31.”

It goes on to say that the creditor can rebut this occurrence if “The creditor (or a third party collection agency on behalf of the creditor) has engaged in significant bona fide collection activity during the 12-month period ending on December 31.”

The problem is that if a creditor sends out a 1099-C years (or decades), after it’s supposed to, the responsibility falls upon the taxpayer to try to explain to the IRS why they believe it should not have been filed that year. Again, there is no specific form for reporting this kind of dispute. You’ll have to include an explanation and you may wind up arguing with the IRS to get it resolved.

How do these fools have the last four of my social sec. #?

OH the ftc cant do a thing trust me I was notified of the filing of a form from them last fall I blew it off now I am paying alot of money.pinnacle was just letting me know and it wasnt a scam go to the irs website its on there under cancelation of debt

i GOT THE SAME CALL INFACT I VERIFIED IT WITH THE IRS INREFERENCE TO WHAT THEY TOLD ME AND ALSO CALLED MY TAX ACCOUNT.. ITS NOT A SCAM .. THE LAW ALLOWS THEM TO DO THIS ... I RATHER PAY THEM THEN THE $32000 I WILL RESPONSIBLE TO PAY TAXES ON FROM THE DBT I DID NOT PAY BACK.. 1099C FORM IS LEGALL YOU SHOULD LOOK INTO AND TALK TO YOUR TAX ADVISOR...GOOD LUCK

Not so recon man do some looking around these folks are ruining lives daily with this 1099c its real it happening and you better get some help if they called you because I to almost was steered wrong but still couldnt pay now I pay the IRS