HELP ADVICE PLEASE (kinda long)

I would converse with them ONLY in writing. Then any B.S. will be documented. I would not pay one cent either unless they agree to total deletion in writing. As you know, a charge-off whether paid or not is the same to the scoring models.

-Cliff

 

What is the date of delinquency?

breeze

 

Mr. M writes that Capital One is required by federal law to furnish me with a 1099 form. I quote, â??Any difference greater than $600 is considered taxable income.â? CAN YOU
BELIEVE THIS?

Yep! I sure can believe it, but it's not what they are trying to make you believe. Capitol One is not required by any federal law to file a 1099 on you. What they are not telling you is that it is a "get even" trick. Here is the deal.

They are not talking about a normal 1099 form, they are talking about a 1099=C forgiveness of debt form. And the amount they will file for is not $600 but the rest of the debt you did not pay and which they "forgave" you. What they are probably hoping for is that you will not file income taxes on the entire $800 and IRS will come looking for you for a possible income tax evasion charge. In any event, if you fail to report it as income and pay the taxes on the income, IRS will come wanting to know why you did not file a proper return and will probably assess you penalties, interest, late fees and the whole 9 yards.

I have no silly idea how much IRS might try to hit you for, but I'd be willing to guess that it could get up around a couple of thousand or more if they want to get nasty with you because you didn't report and pay the taxes on the $800.

Well, it really shouldn't because since you now know where this thing could end up, I wouldn't pay them a crying dime because if you do, what you are going to get isn't going to even be nice. I'd tell them to shove the whole thing where the sun don't even shine.

And if IRS did come after you, I still wouldn't worry much because you don't owe one crying dime until they have assessed you a tax. So if they want money out of you, tell them that you'd like to settle the matter at the earliest possible moment, but the earliest possible moment will be when they present you with a legal and lawfully valid assessment of taxation. a document to which you are legally entitled by law.

So don't pay them a crying dime and save yourself a peck of trouble.

 

Bill is giving good advice,as my pappy use to tell me,you can't get blood out of a rock!!!

 

Well, I can only guess, but it don't take much to figure out that they will take the whole $1600 and subtract the $600 you pay them leaving you with $1000 which is the amount they will file the 1099-C forgiveness of debt form for.

They can't claim it on their income tax as a writeoff unless they pay the taxes on the amount they file for, but it's a neat "get even" tactic for your not paying them.

It could just be a bluff too, because I think they would rather be able to take it off their taxes than to lose the right to do so.

But you are in a real bind too because you can't be sure whether they actually did file the 1099-c on you or not.
At least I don't know of any way to find out in advance.
Maybe someone else does. I know how to get around the taxes, but there is also a lot I don't know about taxes. I've used the 1099-c trick on a couple of occasions, and since they were for pretty huge amounts, well over $100,000 each time, I've heard about the results which were not pretty to say the least. But personally, I've never filed income taxes in all my life, and at 71 years of age, I'm not about to start now.

And yes, I've had a couple of battles with IRS over that, but they were easy to win since I don't owe any taxes until I have been assessed a tax, and although most folks don't want to believe it, no one else does either.

But once you sign and file the returns, you are in it because you have volunteered the information about your earnings and signed your name to it under penalty of perjury. Not a very good position to be in to say the least.

You could be right, but I wouldn't want to count on it.

As usual, best not to pay them a crying dime if they might play that kind of dirty pool on you. But then, why haven't they already done it if they had any intention of doing so in the first place? Does that make any sense to you that all of a sudden they are going to up and do it when the bill is already more than 1 taxable year old and not paid on????????

Don't make no sense to me. If they haven't already done it, then aren't they in violation of the law too?

I'd say it's just a bluff and they want to see if you will fall for it out of fear.

 

Thanks, Brad.

Like I said in my last post, I think it's just a bluff. If one analyzes the gist of the bluff, one would not want to take the risk and so might volunteer to pay the whole thing rather than fool with Uncle Sugar.

Does that sound like a valid train of thought to you?

Hey, I'm just guessing as to what they will or will not do.
Just have to figure out the most likely scenario and to me, that is them playing on fear to get one to pay the whole thing and not argue about it.

 

I know he is...but I'm the type of person who would rather pay up and avoid trouble than stay steadfast and piss people or the IRS off. Things get way too complicated if you ask me. Call me a coward; it's fine.

No, each of us has his comfort level, and only we know what that comfort level is. Nobody can logically call you a coward for not wanting to exceed your personal comfort level.
I did do a little research though, thanks Bill. You got me going in the IRS direction. You are right about Mr. Miller and Capital One playing the "get even" hand. They are not obligated to furnish me with a 1099-C; it is entirely up to them to do so.

Now wait just a cottinpickin minute here! I'm afraid you still don't quite understand. There are several variations of the 1099. One is used by a company to report to the IRS how much a contractor was paid by the company for work or services performed. The law says that a company must supply IRS with a 1099 form for each such contractor who is paid more than $600 in a calendar or reporting year.

We are not talking about a 1099 here. Neither are they. The 1099-C forgiveness of debt is a totally different form. I don't know for sure how many different types of 1099 there are, but it's obvious that there has to be a 1099, a 1099-A, a 1099-B, and a 1099-C. Each has a different purpose. They are not talking about a normal 1099 because they didn't pay you anything. The only form they can be talking about is a 1099-C forgiveness of debt. Nothing else makes any sense.

About my previous question to you, forget it. It was stupid and I wasn't thinking. Lucky for me I'm a student who is paid through federal work study so I really have no taxable income for this year. $200 or $800 would mak no difference to me on paying taxes,

Oh??? Well I don't know what it is in your state,but in Oklahoma you can only earn less than $9600 per year in order to be tax exempt. The federal is much higher than that.
A thousand would take a bite out of you for state tax purposes.

but it still is a nasty little ploy on Capital One's part. I think I have the information I need to call up Mr. Miller on Monday and give him a piece of my mind.

NNNNNOOOOOOOOOO! Don't do that. Let the BAS stew. Don't tell him anything at all. Just ignore the slimy skunk.

Thanks for all the advice. If anyone has anymore, you're welcome to give it...especially about persuading him to delete it from my credit report. Has anyone out there had success with Cap One deleting anything upon payment?

I'd say you can forget about them deleting anything at all.
So if they aren't going to delete, why pay them anything at all. Stand up and fight.

 

Mr. Miller says in the letter that Capital One is obligated to send ME a 1099. So wouldn't I know when/if they file on me since he says I will be getting a form.

The Mexicans have a saying for that, and it's "lavando me coco" which means literally speaking, "he's washing my head." Which is to say, he's bluffing you. Or you misunderstood. Whichever. If they do file a 1099-C on you, then they don't have to send you a copy unless they want to.

Personally, I'd find it real surprising if they were so kind to you as to let you in on it. I think he either don't know what he's talking about or he's pulling your leg.

Isn't it a violation for them to say that they are obligated to send me a 1099 when really it is up to them alone,

I never heard of that one. But I would be almost willing to bet there isn't any such law against that. It's a violation to say they are going to sue you and not have any intention of doing so. I bet that's where you heard that line.

and not a law? Well, I'm no lawyer, but I never heard of it.
being a law.

 

Fight now? I don't need this sitting on my credit report, the amount going up and up every damn month. By the time the SOL comes, the damn thing could be over $3000! It's ridiculous!

That isn't going to happen, at least not to the extent that you fear. Yes, it will go up, but if you go at it right, you won't care what the amount finally is because you won't be paying it anyway. And you already have a bad rap on your credit report, so that isn't going to make any difference worth losing sleep over. And the SOL starts on the date of your last payment or thereabouts. I don't know what state you live in, but you can look it up on the internet and see what the SOL is in your state. If you live in the right state, you could be almost there now.

New York is 4 years if I remember right.

And if you go at it right, you can get it off your credit report, so that's not a real biggie either.

 

It sure is a pity that you couldn't make the minimum payment on $500 which is less than $15 per month. Now it is $800 and 7 years' worth of bad credit? How could you not have had $15? I think you ought to pay the $800 and forget about deletions, at least for the time being.

 

Bill, thanks for your help, but I must admit you're rather vague sometimes. "you have to stand up and fight..." and "if you go at it right, you can get it removed..." And how would I do any of these things?

There is a lot of info on my website that will give you some ideas about how to go about it. Have you tried looking at it and checking out all the links? I have so many people asking me the same questions both here and by email and by phone that I decided to put most of it on the website so I don't have to answer the same questions over and over and over again. It does get real time consuming after a while.

I've disputed with all three CRAs and it comes back verified, within 10 business days or less.

Who verified it? Did you ever ask the CRAs that question?

I live in Ohio, so my SOL is 7 years. A screw-up from when I was 21 is going to be on my report until I'm almost 30.

I'm just afraid if I don't pay now, that they're going to come after me, garnish my wages or sue me or something. I don't know...yeah, they put the fear in me.

Well, I'm doing a whole bunch of court cases and cites and arguments that can be used in a court of law to defend one's self. And every time I get a new batch of material posted on the website, I do a couple of threads complete with links so people can go see what is there and use it to their hearts content.

One thing you sure have to learn is to find the resources and do your homework. I'm trying to get it all put up so people don't have to ask the same questions over and over.
Just go do the homework, but it is a very lengthy and tedious process since scanners often make big mistakes and so it all has to be proof read.