Why do I need to sign a W9 for a credit card debt? 20 Answers as of January 21, 2013

I owe $3555.55 to a credit card company. I said I would pay this amount and they started to play the game. They want me to sign a w9. I am ready to throw in the towel and file bankruptcy. Can you tell me what a w9 is for? I don't trust them. I recorded our phone calls. They said it was for a tax write off for chase mc.

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Heupel Law
Heupel Law | Kevin Heupel
The credit card company wants you to sign a W9 so they can send you a 1099 on the debt. When you settle a debt, you have to pay taxes on the amount of debt settled.
Answer Applies to: Colorado
Replied: 8/10/2011
Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
file the BK and schedule them, no need for the w-9
Answer Applies to: Washington
Replied: 8/11/2011
Ray Fisher Law Offices
Ray Fisher Law Offices | Ray Fisher
You do not need to sign anything for the credit card company.
Answer Applies to: Texas
Replied: 8/2/2011
Glen A. Kurtis, P.C.
Glen A. Kurtis, P.C. | Glen A. Kurtis
If you settle a credit card for less than the full amount the company has the right to issue you a 1098 when they write off the remaining balance. The balance that was not paid must be treated as income to you and you would have to pay taxes on it.
Answer Applies to: New York
Replied: 8/2/2011
Theodore N. Stapleton, PC
Theodore N. Stapleton, PC | Theodore N. Stapleton
A w-9 is a request for your social security number probably so they can report any discount of the debt as forgiveness of debt income to you.
Answer Applies to: Georgia
Replied: 8/1/2011
    R. Steven Chambers PLLC | R. Steven Chambers PLLC
    It is probably so they can report any debt they forgive as income to you to the IRS. Any debt that is forgiven is considered income.
    Answer Applies to: Utah
    Replied: 1/21/2013
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    I have no idea why they want you sign a W9. I suspect they are writing a portion off and will then have you taxed on the amount forgiven. A bankruptcy will prevent that from happening. Never record anyone in California without their permission. There is a $5,000.00 civil penalty if you are caught. Dump the recording. You can never use it.
    Answer Applies to: California
    Replied: 8/1/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    According to Wikipedia, a W-9 form is used by third parties to file an information return with the IRS on reportable payments made to others. It requests the name, address, and taxpayer identification information of a taxpayer (usually in the form of a Social Security Numberor Employer Identification Number- either number is considered a Taxpayer Identification Number.. The form is never actually sent to the IRS, but is maintained by the person who files the information return for verification purposes. The information on the W-9 and the payment made are usually reported on a Form 1096 or 1099.
    Answer Applies to: California
    Replied: 7/31/2011
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    Yes, if you negotiate a reduction in payment to a creditor they will file a 1099 for forgiveness of debt income which becomes taxable income to you. Filing bankruptcy would avoid that problem.
    Answer Applies to: California
    Replied: 7/31/2011
    Law Office of John C. Farrell, Jr.
    Law Office of John C. Farrell, Jr. | John C. Farrell, Jr.
    I have been in the trenches of the debt resolution business for years and I have come across Chase requesting a consumer filling out a W-9. However, I have seen it when they settle the debt for less or even write off the entire debt. Obviously, the form W-9 is the IRS form used by a company to request your taxpayer identification number. Most often, Form W-9 is sent to independent contractors, consultants, and other self-employed workers. Form W-9 is also used by banks and other financial institutions to request tax information from customers. You can ask Chase if you pay this amount whether you will still receive a 1099 form which you may have to claim as forgiven debt under the Internal Revenue Code. Regrettably, you already stated that you would pay the amount however if you were to settle the debt for less you could avoid filling out the W9 form and then deal with the 1099 later on.
    Answer Applies to: Massachusetts
    Replied: 7/31/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    A W9 is a form used to verify your social security number. If you are getting a reduction then you will be taxed on the discount so they need your tax number to send you a 1099C. Recording phone calls without the consent of the other party is a crime in California.
    Answer Applies to: California
    Replied: 7/31/2011
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    A W9 is a request for your taxpayer information. If the $3,555.55 you agreed to pay is not the full amount due and you are in fact just paying a portion of the total balance, then the amount you do not pay is income to you and you will to have to pay income taxes on it.
    Answer Applies to: California
    Replied: 7/31/2011
    Law Office of Maureen O' Malley
    Law Office of Maureen O' Malley | Maureen O'Malley
    I don't know what a w9 is. If a creditor cuts your debt, they'll send an IRS form 1099
    Answer Applies to: Virginia
    Replied: 7/31/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    NEVER EVER, and I repeat NEVER, talk to a creditor by phone. They want the W9 to screw you. When you settle a debt, besides ruining your credit, you will be issued, based on the W9 that you must complete, a 1099 and you will owe income tax on the forgiven debt. Do NOT settle a debt without (1) legal advice and (2) an agreement NOT by phone but in writing. Before you get worked over by the creditor, see a lawyer to evaluate the pros and cons of bankruptcy versus other choices.
    Answer Applies to: Georgia
    Replied: 7/30/2011
    Eric J. Benzer, Attorney at Law
    Eric J. Benzer, Attorney at Law | Eric Benzer
    Sign nothing...hire an attorney
    Answer Applies to: Maryland
    Replied: 7/30/2011
    Bird & VanDyke, Inc.
    Bird & VanDyke, Inc. | David VanDyke
    The w 9 is for them to send you a 1099 for cancellation of debt income.
    Answer Applies to: California
    Replied: 7/30/2011
    Judith A. Runyon, Esq. Attorney at Law
    Judith A. Runyon, Esq. Attorney at Law | Judith A. Runyon
    This is not a bankruptcy question
    Answer Applies to: California
    Replied: 7/30/2011
    Law Office of Harry L Styron
    Law Office of Harry L Styron | Harry L Styron
    A W-9 is to provide a payor information necessary to prepare a 1099 for miscellaneous income. I interpret the request to mean that, whatever amount you pay, they intend to report the balance to the IRS as "forgiveness of debt" income, which will cause the IRS to assess it against you. This is always a risk of paying less than you owe when the creditor agrees to accept it.
    Answer Applies to: California
    Replied: 7/30/2011
    Law Office of Felipe A. Malo, P.A.
    Law Office of Felipe A. Malo, P.A. | Felipe Augusto Malo
    w-9 is to insure you are providing your correct TIN number
    Answer Applies to: Florida
    Replied: 7/30/2011
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