Forgiveness of Debt
Date: Thu, 03/15/2007 - 12:07
In 2005 an old debt I owed was cancelled and a 1099 was sent to an old address which I never receieved. yesterday I received a letter from the IRS stating I owed $754 in taxes due to this "Income" that I did not report on my taxes. I pulled a credit report to see what was listed regarding this debt since they supposedly cancelled it in 2005, and there it is, still stating I owe a balance of $4653. If they forgave the balance and reported it to the IRS as income, why is it still listed as a debt owed on my credit report? I called the creditor and asked that question after giving updated address info so they can send me the 1099, and the woman couldn't give me an answer, let alone speak clear english. Is there any info you can offer on this situation?
The creditor didn't report the balance as income because you did
The creditor didn't report the balance as income because you didn't fill the 1099 form and send it to IRS. That's why IRS is collecting on the balance. You now have to pay it to the IRS
