Re: Taxes on FDCPA/FCRA Settlements?
If it was paid in full respond to the IRS explaining that fact along with cancelled check or other proof. Good luck.
Originally posted by c5kirk
...In the early process of cleaning her credit last year I mistakenly decided that we should pay off the $1400 that had been charged off thinking that a paid charge-off would be better than an unpaid charge-off from a credit score standpoint (and, admittedly a moral standpoint too). Anyway, we went ahead and paid the full $1400 amount to the CA that the acct. had been turned over to.
So, it has been paid in full, but now we get a letter from the IRS saying that she owes taxes on the original charge-off. Not sure who we should contact about this and what kind of paperwork will be necessary to clear it all up.
Any advice would be greatly appreciated.
TU FAKO 1/03 754>809
EQ FICO 1/03 607>701
EX FAKO 2/03 624>649> 666>661