How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Jax Tax Your Own Question

Jax Tax
Jax Tax, Tax Attorney
Category: Tax
Satisfied Customers: 1377
Experience:  JD, LL.M in Business and Taxation, IRS Enrolled Agent. Expert in Business and Tax Transactions
59761513
Type Your Tax Question Here...
Jax Tax is online now
A new question is answered every 9 seconds

I received a 1099c today from portfolio recovery regarding

Customer Question

I received a 1099c today from portfolio recovery regarding a debt that was charged off in 1999. What do I do?
Submitted: 3 years ago.
Category: Tax
Expert:  Jax Tax replied 3 years ago.
It mist be included on your taxes. If you have filed, you mist amend them. It is only a matter.of time.until the Irs adds it for.you. They will charge additional penalties if they do it and not inquire as to whether.you qualify for any exception. Get a.professional.and inquire about form 982 exceptions especially insolvency meaning your debt exceeded your assets immediately prior to the discharge.
It is other wise taxable.unless it was a.result.of bankruptcy or foreclosure.or modification of a loan against your primary residence.
Expert:  Anne replied 3 years ago.
Hi

Thank you for using justanswer. Section 6502(a)(1) of the tax code limits the time IRS can collect or levy tax to 10 years after the date of assessment . (See also Tax Code section(NNN) NNN-NNNN1) Court proceedings must also be started the the IRS within that 10 year Statute of limitations.


The statute of limitations for the state of Maine (if that's the state that would have been involved back in 1999) audits is 3 years from the later of the due date or the file date of the tax return. If income understated by more than 50%, statute of limitations is 6 years.

In both cases it appears that the statute of limitations has passed, and you have every right to dispute this 1099C.

You need to send a letter to the issuer of the 1099C via Certified Mail + Return Receipt (NOT regular mail) stating:

Per the Fair Debt Collection Practices Act, I dispute your claim that I entered into any settlement agreement that involves a forgiveness of debt that would necessitate my filing a 1099-C. I will not file any 1099-C form until you provide written documentation that I entered into any such agreement, to include:
- a copy of a written agreement with my signature where I agreed to settle with your firm that involves a forgiveness of debt that would require my filing a 1099-C
- a copy of the canceled check for any alleged payment by me

Per the Fair Debt Collection Practices Act, I am requesting written validation of this alleged debt, including a copy of the original signed application with my signature
--------------------------------------…
* Do not sign your signature on any document that you mail to a debt collector. It could end up on a forged document that can be used against you. Simply type your full name.

If you get any notice from the IRS regarding this 1099C, send a letter to them stating that you did not enter into any settlement agreement that involves a forgiveness of debt and that a 1099-C will not be filed until proof is provided about any alleged settlement.

I hope this helps.




Expert:  Jax Tax replied 3 years ago.
The 10 year statute of limitations starts from the assessment date. If the 1099c was not included on the return, the time has not began. Also, the 1099 was just issued. It is up to the creditor to determine when to write of a balance. I am assuming the 1099 is forXXXXXsince it was just received.If the 1099 is on a 2010 form, you do need to amend the return or include it if not filed and look at the 982 exceptions.
Jax Tax, Tax Attorney
Category: Tax
Satisfied Customers: 1377
Experience: JD, LL.M in Business and Taxation, IRS Enrolled Agent. Expert in Business and Tax Transactions
Jax Tax and other Tax Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.
 
 
 
Chat Now With A Tax Professional
Jax Tax
Jax Tax
Tax Professional
1377 Satisfied Customers
JD, LL.M in Business and Taxation, IRS Enrolled Agent. Expert in Business and Tax Transactions