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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 [email protected]
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.
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is there a phone number I can call so they will remove that from my account?