1099-a &1099-c tax forms from debt collectors are fine. But, the debt collector needs to initiate the filing of these forms on the date that the debt is canceled. It is not honest reporting when they send the form to IRS without notice to the persons involved. Nor should the debt collector be allowed to file the form years after the debt has already been canceled. The IRS and the government have a responsibility to the tax payers to review the laws surrounding these forms and make the laws clearer to the tax payers and hold the debt collectors accountable to a reasonable timeframe when filing these forms. Tax payers should not have to take the brunt of the tax liability (mostly lower income tax payers) when no notice is given. Debt collector not be allowed to collect after forms filed.
This is historical material “frozen in time”. The website is no longer updated and links to external websites and some internal pages may not work.
