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When you used the money from your credit card - that was a loan - and that amount was not included into your gross income fro tax purposes - correct? That was because you were expected to pay that amount back.
However - when it became obvious that amount will NEVER be paid - it is classified as COD income - cancellation of debt income - and becomes taxable.
The credit card company decided that your debt is not collectible - and chooses to forgive it. In this case they are required to issue form 1099C reporting that amount.
generally - that amount is reported on form 1040 line 21 as Other income.
However - if you were insolvent at the time the debt was forgiven - you may use form 982 and exclude that amount from taxable income.
So far - if you did not include that forgiven amount into your tax return - the IRS did that for you - and if you agree - you are expected to pay additional tax liability.
If you are not able to pay - you may apply for the installment agreement - and pay that amount in manageable monthly payments.
If you already have installment agreement - you may apply to modify it - and include that additional debt.
That would be another issue if you feel that form 1099C was issued incorrectly.
That must be communicated to the sender.
Arizona Law allows lenders a 6 Year Statute of Limitations to Collect Credit Card Debt.
Otherwise - you are correct - the form 1099C must be issued in the year when the debt becomes noncollectable.
It is possible that the credit card company overlooked that debt - and it just popped up in their report - and they just clear that report by sending you form 1099C.
If that is an issue - you may communicate with the sender and ask for corrections.