IRS Publication 4681


 

Anytime a bank, credit card issuer or financial company writes off $600 or more worth of your debt, they have to send you a 1099-C, Cancellation of Debt. They also send that same form to the IRS, so Uncle Sam knows which debts you got away with not paying. And here’s the catch: the IRS […]


 

If you settled a credit card debt last year, by paying less than originally owed, the debt settlement company probably didn’t tell you this, but the IRS will: You likely owe taxes on the amount of debt that was forgiven. Anytime a bank, credit card issuer or financial company writes off $600 or more worth […]


 

Q: Is It True That I Will Be Given a 1099-C When I Settle a Debt for $600 or More Off the Amount That Was Due? If So Exactly What Does This Mean? What is the Tax Percentage I Will Be Charged? Is There a Tax Penalty Fee For This? And Will This Increase My […]