IRS QUESTION - now your Debt becomes Income creditcards/credit-card-news/forgiven-debt-1099C-income-tax-3513.php by D’Anne Burley Your cellphone rings and the caller’s states that they are not a telemarketer do into hang up! Then someone calls out your name, all and all in the attempt to collect a debt. But there is a legal issue not shared nor spoken about in the general media. The Debt they are seeking to collect maybe over 10 yrs. old and was written off by the business as a bad debt. This means that the company took you off the call list and recovered a smaller amount via a tax break which is given once the debt as become over 120 days old. Now some employers may hold on to the debt longer not taking the debt, but in countless numbers of cases the debt was written off, but then the debt collectors call your former creditor asking them to sell your 120 days debt to them whereby they will go after you the former customer. In this transaction they buy the debt for under value. So if you owed $100 they will buy your debt for $1.50 then once they buy debt in bundles they seek recovery for the full debt and hundreds or thousands of dollars more. Whereby the retailer is happy as he gets a write off via the IRS and then the debt collect as paid him for non-existing debt which was written off therefore they are in the black whereas you are sinking more and more in a hole because of not having enough money to protect yourself from any of this. Because they knew that there was a issue with requiring written off debt, those in the world of collection who are involves in doing this type of business then decide that they will offer the company money for their receivables prior to the debt becoming due whereas they feel this will remedy the IRS question of whose debt is it anyway. In this formula the business no longer has your debt it’s been taken over by collection agencies but there is a question if the selling for future debt is anything different they the create defraud scam introduced into the Mortgages in the 90’s which lead to the crash of the housing markets. Now under new laws written off debt is concerned income, so now you have at least 2 parties to pay off your debt to, therefore the debtor is now your employee, he receives a write off after 120 days and its getting to him and or her as a means to lower taxes, now under the IRS rules you have to report this debt as income like you are a 1099 employee, making that you owe addition revenue tax on this was well. Just for your records Peace D’Anne Burley danne.burley@gmail The Detectors Radio Network http;//blogtalkradio/danneburleyshow Comments please D’Anne burley danne.burley@gmail the Detectors Radio Network blogtalkradio/danneburleyshow
Posted on: Wed, 21 Jan 2015 00:30:51 +0000
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