Is there a statute of limitations on filing a 1099-C on old debt? 2 Answers as of January 27, 2011

I recently got a 1099-C form from a collections agency for a old credit card debt from 2003. They just wrote the debt off in mid-2010. In 2007, I was sued by a collections agency for this same debt but I was able to get it dismissed by the court at that time. Is their a statute of limitations on filing a 1099-C? Can the collections agency file a 1099-C instead of the original creditor (the bank)? Also, I do not agree with the amount that they listed. What can I do to fight this?

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Law Office of Harry Gordon Oliver II
Law Office of Harry Gordon Oliver II | Harry Gordon Oliver II
I do not know who should issue the 1099-C. You should argue that the debt was not owed, etc. That is reflected in the court dismissal. You should either not report the income & explain why; or, include the 1099-c in income, and then deduct a like amount, You, should explain that you do not have such income. Good luck. You may call me if you do not understand.
Answer Applies to: California
Replied: 1/27/2011
Steven J. Fromm
Steven J. Fromm | Steven J. Fromm & Associates, P.C.
Your best bet is to report the details of the Form 1099-C on your tax return. Give a detailed explanation and attach the document that support your position that there is no discharge of indebtedness income.
Answer Applies to: Pennsylvania
Replied: 1/27/2011
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