11-12-2012, 07:29 PM
BETTER CHECK THAT THEY DO NOT ISSUE 1099-C FORMS IN THE AMOUNT OF THE REDUCTION!
THEY HAVE 3 YEARS TO DO SO, AND YOU GET ONE, AND THE IRS. THE REDUCTION IS REPORTED AS INCOME, BE IT A REFI/RELIEF, LOST CREDIT LINE WRITTEN OFF, ETC.
IT’S BEEN AROUND SINCE MID-90S. THE CURRENT THRILL IS THREATS TO SEND THOSE OUT IF YOU DON’T START PAYING ON PAST-DUE BILLS/CREDIT (even though the statute of limitations expired).
ONCE THE IRS GETS IT, IT GENERALLY TAKES TAX COURT TO RESOLVE IT. LAST THING YOU NEED IS A TAX BILL (AND SE TAX) EXPECTED ON $20K YOU DIDN’T MAKE. THAT’S 15.5% + YOUR BRACKET + STATE.
ASK QUESTIONS!!! GET IT IN WRITING!!
THEY HAVE 3 YEARS TO DO SO, AND YOU GET ONE, AND THE IRS. THE REDUCTION IS REPORTED AS INCOME, BE IT A REFI/RELIEF, LOST CREDIT LINE WRITTEN OFF, ETC.
IT’S BEEN AROUND SINCE MID-90S. THE CURRENT THRILL IS THREATS TO SEND THOSE OUT IF YOU DON’T START PAYING ON PAST-DUE BILLS/CREDIT (even though the statute of limitations expired).
ONCE THE IRS GETS IT, IT GENERALLY TAKES TAX COURT TO RESOLVE IT. LAST THING YOU NEED IS A TAX BILL (AND SE TAX) EXPECTED ON $20K YOU DIDN’T MAKE. THAT’S 15.5% + YOUR BRACKET + STATE.
ASK QUESTIONS!!! GET IT IN WRITING!!