I have said that I was never issued any 1099 for debts that were settled in full. Now what to do? I don't want to call the JDB or CA, and I really don't want to call the IRS. So what to do? Is calling the IRS the thing to do? What do I ask for? Like I have stated I have never gotten a 1099 on any of my debts that I have taken care of, and I have never paid the total amount, say on 15K wanted only 1500, so then this would mean I made 13,500, a few years back then according to what I have read. So now what to do? I also got rid of a debt of 10K for 2K in 07 and I have not gotten anything yet on this either. ??? Thanks Woofer
When I had a business, I had to have the 1099s filed and sent by the end of Jan or the middle of Feb the following year (I don't recall exactly). So, if they haven't sent one, I think you'd be off the hook. If they sent one to the IRS but not to you (unlikely and probably illegal), then you'll probably get a letter from the IRS where you'd have to explain what happened and pay any difference in taxes due. A minor PITA but not the end of the world.
I have a business and have always sent out my 1099's by end of January as the people that work for me like to get their returns fast. Like you I think that if I haven't gotten any, not to rock the boat,however, I think it was hear that I read doesn't matter if YOU do not receive a 1099, as it is mandatory now as forgiveness of debt or such and that YOU should know you owe the money. For me I have forgotten all about it ; ) Woofer
Technically, when an amount over $600 is forgiven you should report it to the IRS and pay taxes on it. But IMHO it would be a mistake in the absence of a 1099-c because you might get one in a later year and have a devil of a time explaining to the IRS that you took it into income and paid tax on it in a prior year. So if you don't get a 1099-c I think you should wait for it. However long it takes to arrive...
Bottom line, if you did not receive a 1099, then it was probably not filed with the IRS either. So, don't worry about it until you get onein the mail.
1099 Query I am a newbie to the forum but no stranger to the IRS. I am a tax preparer and tax resolution consultant. To be on the safe side of life, you should call the IRS 800-829-1040 and ask for any income transcripts on your account. Contrary to popular belief, this does not trigger anything. You do not have to be specific. Just simply ask for income transcripts on your account for whatever tax years you need. The IRS can typically go back 7 years, anything beyond that and is on microfiche and significantly truncated. If you happen to get a nosy rep, then state that in the wake of the rise of identity thefts, you want to be sure your IRS file coincides with your records. This way you know for absolute certain that nothing has been filed on your behalf instead of anxiously not knowing, or, like some of my clients, being broadsided years down the line with a levy when they are getting married, applying for mortgage, etc.
qbfaith's post above gives a possible path to avoiding surprises. If you're like my late second cousin and you live in the same house you were born in (he lived there until he finally went to the nursing home), then the extra effort isn't necessary. But if you've moved around (even a little) and didn't file a form 8822 with the IRS every time you moved (how many of us know to do that?), then you may want to try the transcript approach...
