Can a financing company file a 1099 toward your taxes for a repo that over 18 months old.?

Answer 1

Basically, the 1099-C (Cancellation of Debt) is reported to the IRS as income for the year that the debt was written off by the finance company. If you had a balance still owing after they finance company sold your vehicle at auction, you were still responsible for that amount. By not paying it back, the IRS counts that amount as taxable income.

Answer 2

I beleive what the core of your question is relates to the delay in getting this form to you... 18 months. The responsibility to put all information (even that which is not reported to the IRS by anyone else) lies with the taxpayer himself. It would have been up to you to consider the taxability of the event on your return the year of the repossession. Though the IRS may penalize the provider for not filing the 1099 with the IRS timely that has no effect on you and your obligation to report all income. You may need to amend the return for the year the actual event occured.

Answer 3

Well, a 1099 is used to report interest income (and sometimes property taxes paid out) that they received in a particular year. If there is something on the books that a person paid in, then they'll receive a 1099 on it. This kind of thing is not something that goes against or toward a person's income tax, but can be used as a deduction or reduction of income under certain circumstances.

I imagine that if you've received a 1099 and it is for a year before 2006, it is a corrected one.

Answer 4

a 1099A is for Abandonment of property, a 1099C is for cancellation of Debt,

Depending on what information is on the 1099 this may be taxable income to you

To get a determination of the taxability of this call the IRS @ 1-800-829-1040 Mon-Fri from 7 am to 10pm

Answer 5

Yes. 1099 forms can be used for a number of purposes and they have different letters added to them 1099-G, 1099Misc, etc to cover the different purposes.