paid vs settled

Discussion in 'Credit Talk' started by momkat, Oct 28, 2001.

  1. momkat

    momkat Member

    If an account is listed as paid instead of settled, does it affect the requirement for a 1099-C
    form being filed?
  2. bbauer

    bbauer Banned

    Who said there was any requirement to file a form 1099-c forgiveness of debt form? If there is such a requirement, it's got to be in some smart-alec bill collector's head. What good is it going to do them? Revenge? An illegal threat to cororce you into paying up? They can't do themselves any good by filing it. They can't take it off their taxes unless they first pay the taxes on what they claimed you owed them. They sure aren't stupid enough to lose the money you didn't pay them and then pay IRS the taxes so they can take it off their taxes. Somebody is trying to pull your leg.

    And so what if they do file get stupid and file a form 1099-C? What difference does it make? Ain't going to make you any difference. It isn't going to make you any difference or cost you any more money if you know what you are doing. And if you don't then best you learn. Let me teach you a few facts of life even if you end up not wanting to hear about them.

    1. You don't owe any taxes, now and you never did and it isn't likely you will anytime real soon. Most assuredly not this coming year.
    2. You have never paid any taxes in your whole life even if you have been bamboozled into paying a gadzillion dollars to the IRS. All you ever did was to put up a deposit against the possibility that you might owe a tax and then you didn't dispute the debt because you didn't know you could, the government took your deposits by default because you didn't argue about it.
    3. If your employer is taking money out of your paycheck, he is illegally garnishing your money because he sure don't have the governments permission to do so. If you want your boss to get a real dumb look on his face, just go into his office and tell him you demand to either see his copy of IRS form 8655. That's the one that authorizes him to withhold money from your earnings as an employee. If he don't have it, he can't withhold your money. And he don't have one. That's a fact you can take to the bank and he can just put in his pipe and smoke it. Fact of life.

    It's right there in the January 1999 Internal Revenue Manual, Sec. (11/21/1997). That's also backed up in Title 26 of the United States Code (Internal Revenue Code), and the Treasury Financial Manual, available on the Financial Management Service web page, sections 5512 through 5520a of title 5 of the United States Code, Parts 202 through 215 of Title 31 of the Code of Federal Regulations, and Part 31 of the Code of Federal Regulations. A ton of laws and they all say the same thing.

    Yeah, I know, you don't want to read all that legal crap and you don't want to go fighting with your boss over whether he is illegally taking money away from you or not and you don't want the IRS to come knocking on your door because that stupid bill collector filed a form 1099-C on you and you didn't tell the IRS that you made that much extra income by not paying your bills.
    Remember the old saw about how a penny saved is a penny earned? Well, you saved the money when you didn't pay the bills. A penny saved is a penny earned right? And if you earned any money, the IRS wants to con you into paying them a fancy chunk of your earnings so they can go pay somebody $125,000 to study flatulance in cows or the sex life of humming birds or tell them how long a race horse is. They gotta be sure pore ole uncle tom, dick and harry all got nice cushy jobs, don't they? And somebody gotta pay for all them fellers too, don't they? So pony up!
    Be a good citizen.

    Well, so what's the answer to the whole mess you might have got yourself into by not paying that smart alec bill collector? Well, the most likely answer is to just forget about it because most likely he is just using it as a tactic to scare the hell out of you so you pay him his money.

    So the IRS comes knocking on your door wanting their cut? Tell them to prove you owe them anything and you will be glad to pay what you owe. Tell them that when they provide you with a lawfully executed assessment of taxation then you will be glad to pay them anything you have been assessed, but until you have been lawfully assessed a tax via a lawful assessment of taxation you don't owe them a crying dime.

    And then what about that smart alec bill collector? Did he tell you that if you didn't pay the tax on the money you saved, the IRS would throw you in jail for tax evasion? Was he stupid enough to threaten you in any way or claim you was gonna get hit with some kind of criminal charge if you didn't pay him? If he did, that's illegal too and you can hit him hard if you can prove it.

    And while we are talking about making people prove things, did you ever demand that he prove that you owed the debt? If not, I'd get busy and make him prove you owe the debt in the first place. If he can't do that or don't do that, you got him between a rock and the hard place and it's his turn to start sweating his butt off.

    Personally, I'd just love it if some smart alec bill collector tried to threaten me that way.
    Bet he'd never do it again.

    Hey! I gotta go hit the sack. Just think about it a bit. Forget his smart-alec threats and send him a validation letter and go from there. Don't let him bully you that way.

    GEORGE Well-Known Member

  4. bbauer

    bbauer Banned

    Hi Georgel
    &#191 &#191 &#191 &#191 &#191 &#191 &#191 &#191 &#191 &#191 &#191 &#191 &#191 &#191 &#191 &#191 &#191

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