The Tax Questions Blog

Posts Tagged ‘who 1099’

Question: Who and when will issue a 1099-C for debts i am having trouble paying?

Will it be issued by the CC compnay or the collection company? If issued by the CC compnay am i still liable to the collection company?

I'm trying to pay off all my debts but without a job i am having some serious difficulty
Thanks.
So the Credit Card company issued a 1099-c for the full amount, i pay taxes on this amount. sounds fair. but are you saying i still have to pay the full amount to the collection agency? anyone else have the same understanding.

thanks for the link.

Answer: If the original creditor (the CC company) took a charge off on your account, then they would under IRS rules have to send you and the IRS a 1099C. You would then have to claim it as income on your federal taxes.

However, the IRS guidelines state any charged off debts under $600 do no have to be reported nor does a 1099C need to be filed.

There are also exceptions and other rules that you can read about at the link I have provided in the source area.

Also, if you are unemployed at the present time, then you would be considered "judgment proof" if you have no money or assets (unemployment benefits can not be garnished either).

And YES you are liable to the collection agency unless the debt has become "time barred" or otherwise known as beyond your state statutes to seek legal action to collect on the debt. You can check you states SOL at the following web site

http://www.creditcards.com/credit-card-news/credit-card-state-statute-limitations-1282.php

If the debt is time barred, then do nothing. Do not offer payment arrangements or make any payments as this would reset the state statute and then they could take you to court.

Hope this helps answer your question

Hosting Companies - Who is Your Lobbyist Where is Your 1099

By Tom Millitzer I am crafting my presentation for HostingCon and tangents keep on slipping in. I kick them out, Obviously I can't just go off in the wrong direction. So these are a couple of topics we can discuss over a Texas tea. First who is your lobbyist in Washington? That said lets go to topic B.

Investing & Personal Finance Tips : Who Has to File 1099 IRS Form?