Cancellation Of Debt 1099 insolvent

Sorry I don't really have an answer for you right now Tim, but in my searches I remember reading something on this and it seemed the guys CPA had told him it only effects you if you actually paid a lesser amount on the debt. If I find it I'll post it here for you.
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Tim,

The easy way is to say it's not yours {if it isn't}.
To prove insolvency, you have to show a negative net worth. That takes into account the value of any retirement accounts, equity in a home, car, etc. You're gonna be digging for records and crunching some numbers if you go that route.

 

Basically it works like this:

Since the 1099 is being assessed now, you have 10 years SOL to pay it from the date of assessment (now?).

Take all of your equity(car/house/property). They can take that equity.

Then if thats nothing (no equity). They take your income, and calculate based on numbers they decide how much you can spend each month.

The "Anything left over" X 10 years, is theirs. If its less than that amount they can't collect it.

You need an IRS attorney to handle an offer in compromise or payment plan if the sum is a large amount and they deem the debt is yours.

 

YOU DON'T HAVE TO PROVE ANYTHING!!!

THEY HAVE TO PROVE THE DEBT IS YOURS!!!

YOUR NAME, PHONE, ADDRESS, IN A COMPUTER IS NOT PROOF!!!

 

Why should anyone pay anything for something they don't owe????

 

Tim T: I have your name in my computer...YOU OWE ME $50.00...I have NO paperwork to prove it...just send me the $50.00 ok?

 

George I have your name on an invoice for 100 dollars when Tim sends you the $50.oo please add 50 bucks to it and send it all to me!

 

But you are in my computer for $800.00!!!
I'll take off the $100.00 off your bill...

 

Can you validate that or are you better a violation like the CAs are?

 

O where O where is Bill B?

 

THEY HAVE TO PROVE IT!!!

 

IRS does not have to prove anything. They can slap a lien on you with no docs, no nothing. There is no due process, unless you know their rules -ex-IRS agents and tax attorneys.

Your best bet is first, to go down there and get someone you can talk to face to face. If they have to come looking for you, you will be in trouble. Explain the exact situation, take any documentation you have from that year - credit reports, etc. and try to talk to them. I got someone who was very nice and helpful, maybe you will too.

If not, depending on the amount (penalties and interest really add up), get yourself some legal help.

 

The only way to get an old credit report is if you have one. CRA's don't keep old info.

 

Since when is he responsible for a debt that wasn't his? & Why should he pay someone elses Taxes?

 

So, what do you suggest he should do, lb? Just refuse?

 

I'm Gonna send the IRS A 1099 on you.
When the tax man comes a knockin on your door are you gonna meet him with your check book?

 

According to the article I read, reporting uncollected debt to IRS on form 1099 is not acceptable unless they are a secured creditor who recovered their security and disposed of it for less than what is owed. Also If I understood the article right, it goes on to say that, what is reported on the 1099 is the difference of the recovery. (If they sold the debt they must deduct what they were paid from the amount reported on the 1099???)

Not that this is much help to you Tim T but I thought it might answer some questions. Before I actually went to the IRS I would first talk to my CPA because if nothing else he will guide you on how to approach the IRS (might even be willing to go with you) or consult with a tax attorney. If nothing else they can guide you on what not to say or admit to an IRS agent when you go down there.

I'm just a big ole chicken, if it were me having to go down to the IRS I would want to have some idea of what they could throw at me.

Read article: www.creditworthy.com/3jm/articles/cw122097.htm
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