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Does not a bank need to send you copy B of 1099C for a cancelled debt? Chase sent copied and pasted on letter head.

Clearwater, FL |
Filed under: Debt Tax law

I had about 20,000 unsecured cr card at Chase Bank - i informed them in june 2010 that i was filing for ssd and could no longer work ft or pay debt.......it was turned over to a third party collector many times. I received a lltr from Chse that was a copied and pasted version of a 1099C but on their letter head with their phone number right in the middle of the form. I questioned the validity - they responded that their "bank took a loss on April 29, 2011 for this debt" and that it went out to third party collectors....I am familiar with the third party collectors it went to and they buy debt. Chase did not and will not send me the original Copy B of the 1099C - why? I know that it is illegal to copy and paste info off an irs official document....confused in Clearwater.

I understand you continue to have concerns regarding the validity of the Form 1099-C issued for the above-referenced account. Our records reflect the account was taken as a loss to the bank due to severe delinquency on April 29, 2011. The account was placed several times for collection efforts that were unsuccessful and later returned to us. This account was never sold. We then updated our records to ensure no further collection activities will occur regarding this account. The Form 1099-C was issued in January 2014, for the tax year 2013. The IRS requires financial institutions to report cancelled debts as of the end of the tax year if the principal cancelled amount is $600.00 or more. If you have any questions regarding the Form 1099-C, please consult a tax advisor for advice. Based on the information provided above, we must respectfully decline the request to rescind the Form 1099-C for the tax year 2013

Attorney Answers 3


  1. I am not aware of any IRS requirement that a 1099 be provided on any required form, but the IRS website at www.irs.gov has a lot of obscure information and it may be best to do your research from the horse's mouth, so to speak. Hope this perspective helps!


  2. Sounds a little suspicious but if you already verified it with a trusted number from Chase, it sounds like they stand behind the document. I don't think it hurts to submit the form you received unless you are disputing the amount shown or the entity that should be issuing it. Hopefully you can also use Form 982 to get rid of this "Income" and not have to pay tax on it. I wrote a legal guide about the subject:
    http://www.avvo.com/legal-guides/ugc/tax-problems-from-settling-debt-the-1099c-problem

    The dialogue on this website does not constitute legal advice nor does it form any sort of attorney-client relationship.


  3. Is it a corrected 1099C? If it was sent after the 31st of January, this could be the case.

    The information on this site is not, nor is it intended to be, legal advice. Attorney Satterwhite invites you to call or e-mail for more information, however, visiting his website or contacting him does not establish an attorney-client relationship. Please do not send information that may be considered privileged or confidential prior to establishing an attorney-client relationship.

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