How do I dispute a 1099c from a auto finance company?
My car was repossessed in 2006 and now the finance company is trying to get a write off this year, this company would not work with me doing the time I had the car, so therefor, I voluntarily gave the car back. I’m sure they resold the car by now, so why did they wait until now to send me a 1099. This is consider net income and I would end up paying the IRS. Please Help. Thanks!
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Comment by Sharon T
They forgave your debt, which is then taxable income to you unless you were insolvent at the time (such as bankruptcy). You’ll need to include it on Line 21 of your income tax return. Yes, you will owe tax but that is far less than if you had repaid the debt.
Posted on September 1, 2010 at 10:46 am