If you received a notice to file 1099-C or had a 1099-C filed against you please contact our office if you have any questions. A 1099-C reports Cancellation of Debt Income (CODI) to the IRS. According to the IRS, if a debt is canceled, forgiven or discharged, you must include the canceled amount in your gross income and pay taxes on that “income,” unless you qualify for an exclusion or exception. Creditors who forgive $600 or more of debt are required to file Form 1099-C with the IRS.

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Before we file a 1099-C we send out a notice to the most recent address we have on file. There is no statue of limitations when it comes to filing a 1099-C form so occasionally the debt might be years or even decades old. In our notices we offer settlements that are lower then what would be taxed by the IRS and is our last attempt at collecting the debt. If a 1099-C has been filed against you and you received a letter from the IRS or have any additional questions regarding the process please consult a tax professional or attorney.

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If you would like to contact our office regarding a 1099-C please call (800) 492-7954