Tax Law (Questions About Taxes)/1099-C

Advertisement


Question
Hi. I recently received a 1099-C from a credit card issuer. Does this mean the debt was canceled and can never be collected, either by the credit card issuer or a collection agency it may have sold the debt to? Or will it come back to haunt me?

Also, does the credit card company have to issue a 1099-C in the year that the debt was forgiven? I've heard of people receiving a 1099-C for debts from years ago.

Thanks.

Answer
If forgiven, 1099-c in year of forgiveness

If not yet forgiven, no 1099-c

Generally if they give you a 1099-c they can't try and collect later (legal question)

Plus, if you were insolvent you might not have to pay tax the 1099-c income.  But you still have to report it on 1040

Tax Law (Questions About Taxes)

All Answers


Answers by Expert:


Ask Experts

Volunteer


MEdusa

Expertise

Tax and general business including hospitality related (hotel mgmt degree and experience in industry prior to obtaining ms tax and cpa).

Experience

19 years cpa. ms tax. NOTE: My discussions are only a general information and do not constitute tax advise without entering into a specific agreement and executing an engagement letter; This free chat is nothing more than general information and should not be construed as tax advice nor does my response or replies imply an agreement to provide client specific advice or other guidance for purposes of avoiding IRS tax or penalties and should not be relied upon without your own validation and confirmation of the how the discussion may fit your facts... Not having all the facts and/or not having a direct client relationship prevents me from providing the most accurate replies as possible and I highly suggest using a local CPA to provide you with written advice and guidance. Taking matters into your own hands is much akin to trying to land an airplane without a license. It is easy to FLY a plane, but LANDING is when critical experience is key. In short, caveat emptor; do your homework and don't just rely on free chat board advice anywhere, anytime.

Organizations
AICPA, CSCPA (Ct society), National Tax,

Publications
a bunch.

Education/Credentials
MS tax and other post graduate coursework

Awards and Honors
variety including Summa Cum Laude

Past/Present Clients
I don't disclose or kiss and tell

©2016 About.com. All rights reserved.