Is this for real?

[marbol]

What is the name of your state? TX

When cleaning up my credit, I noticed an entry on my credit report that I had no idea what it was. I sent the alleged creditor a letter asking them to remove it. I said I had never seen or heard of the debt before and they have made a mistake.

They said they could remove it if I pay half of the amuont and they would write off the other amount and send me a 1099 for that half.

I can't believe this - that sounds totally out of line. I am supposed to pay half of something that is not my debt, plus the taxes on another half? so they can write it off?

What can be done? Does the IRS just automatically take the word of companies that send in 1099-s?

 

[LdiJ]

What is the name of your state? TX

When cleaning up my credit, I noticed an entry on my credit report that I had no idea what it was. I sent the alleged creditor a letter asking them to remove it. I said I had never seen or heard of the debt before and they have made a mistake.

They said they could remove it if I pay half of the amuont and they would write off the other amount and send me a 1099 for that half.

I can't believe this - that sounds totally out of line. I am supposed to pay half of something that is not my debt, plus the taxes on another half? so they can write it off?

What can be done? Does the IRS just automatically take the word of companies that send in 1099-s?

First, you demand that they provide proof of the debt. Then, depending if they do or don't, you take further action from there.

Yes, the IRS just automatically takes the word of companies that send in 1099s.

 

[irsos]

IRS an 1099's

First, you demand that they provide proof of the debt. Then, depending if they do or don't, you take further action from there.

Yes, the IRS just automatically takes the word of companies that send in 1099s.

This is partially true. The amount reported to the IRS is believed to be correct unless challenged by the receiver. If you do, the burden of proof is on the issuer to prove it was valid. Cancellation of debt is not taxable if it was part of a bankruptcy or if you were technically insolvent at the time.

Mike Wellman
IRSOS.com

 

[Zigner]

Mike -

Please remove your advertisement link from your post.