Have Legal Questions? Ask a Lawyer Now.
How can the IRS charge me for credit card bill I had from 2000,2001 and did not pay. I agree I should have paid but how can the goverment charge me in 2010,2011 as income that I did not pay the bills in full? thank you Elena xxxxxxXXX@XXXXXX.XXX XXX-XXX-XXXX
What do you mean they "charged you for a credit card bill"?
I had a credit card that was not paid in 2000, they charged me $2100 for that in my return for 2010.(this was turned over from a debt collector) now they have charged me additional $500 for cards used in 2001 in my return for 2011 (different debt collector) IRS said it was considered income and I did not claim it with my return.I owe them this money
The IRS does consider unpaid debt as income. In many cases (every one that I have seen) it is triggered by the creditor sending a 1099 form to the debtor.
If you filed a return the IRS can only go back three years to audit it and ten years to collect on unpaid taxes so you may want to appeal the extra taxes.
Your position would have to be that if they were going to count it as income then they would have to do so back then, not now. You can also dispute that you actually owed the money and, in addition, you can claim that the majority of it was not actual debt it was interest and other fees and you could possibly reduce the debt that way.
However, to get back to the original question, bad debt can be deducted by the creditor and count as income by the debtor.
after I have paid this last amount, does that mean that the debt is paid and they can't charge me with this again? Do we know why they waited so long to collect?
No idea why they waited so long to collect but if you declare it as income then that should wash the debt out. They can try and collect but you would not be under an obligation to pay.
Thank you for the help
Best wishes to you.
Please ask any follow up questions in this thread. When all of your questions have been answered, then I would ask that you give a Positive Rating (of course I'd suggest Excellent) since that is the only way I get credit for my work and also please consider clicking "BONUS" as a nice way of saying "thanks" for a job well done, although this is neither required nor expected. When looking at the answer I ask you to bear in mind I can’t control what the law is and whether it helps you, I can only tell you what it says, and I assume you want truthful information. Also, issuing a positive rating keeps the question from “timing out” so you can return in the future if you think of a follow up.
However, please do not issue a rating of any kind until all of your questions have been answered and please use the Reply button to ask additional questions or to provide answers to my questions.
is there a phone number I can call so they will remove that from my account?
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).