Here's the deal: I paid off a charge-off that was for "$10,000" (their figures not mine) by settling on a $3,000 one time payment (ouch)...I thought I was done with it, but now the IRS says I owe taxes on the $7000 they "wrote off" - as if it's income... Question is, is that all for real and will I have to pay? Is there any way to minimize it? I know I should have researched more carefully, but at the time I just had to get them off my back...Now it's another big fee that I just can't afford! Thanks in advance...any help would be sincerely appreciated...
I apologize for not doing my homework first...I've done some reading of past posts now and I can see that it's very likely I'll have to pay...the IRS gets their cut... I never got the 1099-C, but I guess that's not unusual either...(OC was FUSA) But... I did see that if the amount forgiven is disputed, then it can be excepted out... Does anyone know how do I can prove it was not an agreed amount? And does it become more of a hassle with the IRS to contest it, rather than just biting the bullet and paying it (and keeping a lower profile)?
