I received a letter from the irs stating that i owe taxes on a repossesion that happened 10 yrs ago never received a 1099 for it

How long can a bank report a repossession to the irs. If i never received a 1099 am i still responsible? Its been 10 years ago.

Lancaster, SC -

Attorney Answers (1)

Bruce Givner

Bruce Givner

Tax Lawyer - Los Angeles, CA
Answered

The 1099 is not what causes you to have taxable income. The repossession was what caused the taxable income. However, if this occurred 10 years ago, as long as you filed a return for that year, the statute of limitations is no longer open to the IRS unless you committed fraud. If you didn't include the item on your return because you were unaware that it was income, that is not fraud.

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