Teg, In brief, it sounds like this company screwed up (by not filing the 1099 C form), and now somehow is betting you didn't file (since they have heard nothing from the IRS), so, they think there's an opportunity to go after you for the balance of $29K. A review of your credit report shows you have improved your financial situation, and the company now smells blood. To the point, this company is "screwed". The only thing they can really do at this point, is let the whole thing die. With the 1099 C as evidence, they have "cancelled the ENTIRE debt". To sell the debt, or attempt collection is now illegal. If they try to file the 1099 C now, they will open themselves for fines and penalties. Let us know how it goes with the IRS. Just do some homework trying to recreate your financial status for 2004. You may have to submit the insolvency worksheet.
I haven't posted in a couple of years but I have been lurking. I am a forme IRS employee and you stated something that was very telling. Did the IRS contact you with a letter stating that there was 29K in extra income? In this letter, you either agreed and would be be subject to the balance due or you disagreed and submitted documents? The reason I ask is that if the finance company sent a 1099-C to you and reported it on their financials, this triggers a program at the IRS service centers that is called IRPTR which roughly stands for unreported income. The information comes to the IRS roughly around July or August of the next year and notices are sent to the taxpayers around Sept -Oct. If you did receive this or you think you did, call 1-800-829-1040 and request a free transcript of your filing and any related reporting documents such as W-2, 1099, 1098. The rep who picks up the phone does not analyze but just makes a print or request one and sends this information to you either by fax or mail within 2 weeks.
Epitomee, thank you. I did not receive any letter of any kind from the IRS whatsoever. I only called the IRS because I found out I hadn't filed the 1099C and was afraid of reprecussions. My brain is absolute mud right now. I just spent over 2 hours on the phone with the IRS. I was transferred 6 times to different departments about this. I had to reexplain the situation each time. The general gist of my ordeal is this: I did not include the 1099C on my 2004 return. The finance company in question did submit the 1099C to the IRS. I have received no correspondance from the IRS to complete a CP2000 concerning this. The final lady I spoke with stated this: If I WANTED to file an ammended 1040 with a Form 982 for that year including the 1099C form I could do that. If I receive a CP2000 from the IRS I will HAVE to submit the ammeded return along with a Form 982 to show the 1099C and prove insolvency. My take on it is that unless they contact me wanting that information in essence I don't have to send it. But they weren't going to come right out and say that. But thats the impression I got. There are some rude people in that organization, esp in the dept that deals with omitted 1099C's. This one fellow states since I had a few dishes, thrift shop clothes, 2nd hand furniture and a 500 non running van I had assests that year and was out to screw the IRS. Oh and if I sold that 500 van the next year I needed to disclose that on whatever year I sold it. So my impression is this: This finance company cannot come after me or alter my credit report over this and cannot say that they did not send me a 1099C because the IRS has record that they did. If the IRS demands a ammended 1040 and Form 982 proving insolvency for 2004 then I will be required to send that. If they do not then I am not required to do that. I am not going to do their job for them, if they send me a CP2000 requesting I send that then I will. I am not going to volunteer to keep opening that can of worms. At least I am confident that if I do have to send that information my liabilities will be more than my assest which will make me insolvent. By April 15 2008 if I have not received word from the IRS requesting information I will consider the matter done. If I hear anything else from that finance company they will regret it. Does this sound right to y'all? Tegleg
Well, if you wait for the CP2000 the interest rate will date back to April 15, 2005 or whenever the return was due that year (sometimes the date falls on a weekend) The CP2000 run will happen but at least you can get yourself ready for a little tax bill that will run in conjunction with 2008 filing. I would suggest you get a copy of the 1099C, omit your full ssn, send it CMRR to the CA and tell them in so many words to pound sand and have a crappy freaking day. Ex Dear Bottomfeeder: Enclosed is a certified copy of the 1099-C as reported by 1233 Finance Company to the Internal Revenue Service. Beat it, if you report any negative information on my credit report due to your stupidity, I will sue the hell out of you and file a report with the Criminal Investigation Department of the IRS advising of this finance company's questionable financial reporting. Go to Hell Mad Consumer
The CP2000 letters for 2006 have already been sent. If this is from 2004 as the OP originally said, the IRS never got the 1099C from the OC. That is between the OC and the IRS. BTW, the Statute of Limitations on timely filed 2004 returns runs out April 15, 2008.
Sometimes the 1099 sneak in right before statute I see that, I missed it, but I have had experience where some crack pot will file a 1099 C or even D maybe 2 years after the deadline and screw up the taxpayer in the end. You are right that this is between the OC and the IRS but the CA just need to beat it based on the fact that the OC did submit a 1099-C to the OP.
Teg, Do you know when you filed your taxes for the 2004 year? Your SOL may be up sooner that April 15, 2008. I'm guessing you file in January, 2005 if you were expecting a refund. So, short story, the clock seems to have run out for everyone. Document your phone calls to the IRS (to cover yourself), do it while it's fresh in your mind. I agree that "you're done here", forget about it and move on. If the OC finance company comes after you, sue them! If the IRS sends the letter to you, submit the insolvency worksheet, and wipe your hands of the matter. I'm positive you had "debts" to cover any assets.
I believe the time frame is three years from when you filed or when the return was due, whichever is later. That still makes it April 15,2008.
Three years is the max **the three years starts from the time the return was submitted. For instance, you requested an extension to file until Oct 15, 2005, the CSED or statute for a refund is OCT 15, 2008 In the case of omitted income over 25% of the income shown on the return, the statute is 6 years from the due date of the return. This is as per the IRS publication 17 page 19 under "how long to keep records"
But, if submitted before April 15, I believe the date is April 15 three years later, not the date you filed. Therefore my statement of the due date (April 15) or date filed, whichever is LATER.
They claimed that you owed them $29K. Send them a DV FOAD letter, since you already sent them a copy of the 1099. They should be proving to YOU that you owe them them money not the other way around. As far as the IRS is concerned, just get the "tax transcript" to see what you did and based on that make a decision based on what you filed. What's between you and hte IRS is between you and the IRS. The OC has not skin in that game. If the OC has not filed the 1099's, then that is between them and the IRS and IF they do file them, the IRS will let you know. So, gather your facts. Don't send any tax info to th OC. You've done enough. A
I have heard nothing else from this finance company & I have disputed the inquiry they made. I'm not a legal savvy person but if this company even looks at me again I am going to call my lawyer and sue them. They flat out lied to me and tried to coerce me into paying a debt I no longer owe. I really don't expect to hear from the IRS either. If I do I'll send the info to them to prove insolvency. I think if they were gonna go after me they would have already done it. Honestly I was prob looked at after they received the 1099C from the finance company & based on my income they prob figured I wasn't worth the effort. I think it's over and hopefully I will not have to deal with either of them anymore. I just want to sit back, live quietly, pay my dental bill down and let my accounts age so I can eventually qualify for a cash reward card. Thank you all for the help, I would have been so lost without it. Tegleg
