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Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 6181
Experience:  Extensive Experience with Tax, Financial & Estate Issues
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We received a 1099-C form from CitiFinancial. My husband

Customer Question

we received a 1099-C form from CitiFinancial. My husband believes it's from a vehicle he and his ex-wide let go back to the seller approx. 8 years ago.
JA: The Accountant will know how to help. Please tell me more so we can help you best.
Customer: this year we've attempted to repair my husbands credit (ourselves). We noticed a reporting for the exact same about from to different parties. We assumed the debit was sold to a debit collector and both the original lender and the collector filled the amount on his credit. Therefore we disputed the claims, pointing out that it was a duplicate debit. The credit company agreed and removed it from the credit (credit report, or however that works)... Now we're receiving a 1099-C form from CitiFinancial
JA: Is there anything else important you think the Accountant should know?
Customer: Can we dispute this 1099-C form?
JA: I'm sending you to a secure page on JustAnswer so you can place the $5 fully refundable deposit now. While you're filling out that form, I'll tell the Accountant about your situation and connect you two.
Customer: How should we proceed with addressing this?
Submitted: 8 months ago.
Category: Tax
Expert:  Stephen G. replied 8 months ago.

OK, you said it was on the credit report twice, so you were able to have the duplication removed, most likely the one from the collection agency. Is that correct?

Does the debt from CitiFinancial still appear on the credit report or has that now been removed and replaced by the 1099-C that you received?

Is there a date on the 1099-C and if so, what is it?

Expert:  Stephen G. replied 8 months ago.

Is there a date on the 1099-C and if so what is it?

Customer: replied 8 months ago.
Both of them were removed. 1 from the original collection company and 1 from the debit collection company the debit was assumedly sold to.We haven't logged back on to view the credit report, for our 30 (once a year) viewing window has expired. We will now have to pay to view the report again.
Customer: replied 8 months ago.
it says date of identifiable event "06/18/2015"
Customer: replied 8 months ago.
Also, we haven't called CitiFinancial yet. I wanted to be prepared and asked educated questions. I assume it will be a chore to talk to the correct person
Customer: replied 8 months ago.
for the life of me I can not locate the credit report we printed out some months back to verify the original dates from when the loan / abandonment took place. It was approx. 8 years if I remember correctlyAlso, per their divorce papers any residual tax debit would be shared with my husband and his ex-wife. Therefore in the event we do actually owe taxes on this the responsibility would be shared.... would have no idea how to proceed with that
Customer: replied 8 months ago.
correction *
We haven't logged back on to view the credit report, for our 30 *DAY* (once a year) viewing window has expired. We will now have to pay to view the report again.
Customer: replied 8 months ago.
correction *
for the life of me I can not locate the credit report we printed out some months back to verify the original dates from when the loan / abandonment took place. It was approx. 8 years *AGO* if I remember correctly
Expert:  Stephen G. replied 8 months ago.

Well, unfortunately, unless you were insolvent on 6/18/2015, there's not much that can be done with the 1099C income except include it in your tax return.

The way that works (shared responsibility) as far as the IRS is concerned, they will attempt to charge both parties with the full amount of the debt forgiveness.

Depending upon how the wording is structured in the divorce agreement, this isn't a repayment of debt, it is as you describe a "forgiveness" of debt by the lender which is taxable income to the borrower(s).

Expert:  Stephen G. replied 8 months ago.

Any agreement between the parties to the divorce is just that, between the parties; it doesn't bind the IRS to anything. So, they attempt to take the path of least resistance. This happens all the time. Do you know if both your husband and his ex-wife were on the title to the vehicle?

Customer: replied 8 months ago.
both parties would have to pay the full amount?Yes, both names were on the vehicle.Is there any way to postposed this tax?
all sorts of unfortunate tax nightmares took place in 2015 and he now owes 13k I know that's unnecessary info, but just expressing my desperation
Expert:  Stephen G. replied 8 months ago.

As far as how to proceed with sharing the tax burden, the first thing that would be necessary is to find out if his ex-wife also received a 1099-C. If she wasn't on the note initially she wouldn't have received one. Since you just noted she was on the title, most likely she was on the debt.

What you would do on your tax return is to list the 1099-C in the full amount and then

on the next line you would indicate "Less Amt Rep by co-tenant, Sally Smith###-##-####& subtract out 1/2

Then on the 3rd line you would indicate "Amount of 1099-C Rep on this return

Expert:  Stephen G. replied 8 months ago.

No, there's no postponing it if the date on the 1099-C is 6/18/2015

Expert:  Stephen G. replied 8 months ago.

Can your husband tell if they included the full amount of the note or just the amount left after giving credit for the vehicle that was repossessed?

Customer: replied 8 months ago.
okay. thank you.
what is "Amount of 1099-C Rep" ?It is the full amount. ($6,884.29)Also, some of the total owed taxes are due to an error on 2013 tax reporting. He failed to report that the money in an HSA account was actually spent on health care and therefore got taxes. I have to figure out how to go back and correct that, without any of the 2013 tax paperwork
Expert:  Stephen G. replied 8 months ago.

Rep stands for "Reported"

We have to abbreviate all the time & the IRS pretty much knows them all

For example rental property is often listed as WFD &*****

where WFD or W/F/D stands for "Wood Frame Dwelling"

Customer: replied 8 months ago.
I see. thank you
Expert:  Stephen G. replied 8 months ago.

If you have any follow-up questions you can come back here & ask me. Even after we are done, you can access this question to follow-up on the same topic;

Please take a moment to rate my response as that is the only way we receive credit for our share of your payment.

Thanks very much,

Steve G.

Customer: replied 8 months ago.
Thank you, Steve!
Expert:  Stephen G. replied 8 months ago.

OK, thanks for using JustAnswer.com

If you want to reach me again here at JustAnswer.com on any other financial or tax matters, just ask for "Steve G" at the beginning of your question.

Steve G.

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