i had bought a car from dodge dealer and it turned out to be a lemon so i let it go back, and now the collection departartment that they hired tells me that they cancount it as my income for this year if i do not settle with them. they said that they would turn it into the irs and then the irs will send me a 1099 form if i do not settle with them.
2007-08-09 00:13:03 · 3 answers · asked by dillinger 1 in Business & Finance ➔ Taxes ➔ United States
The finance company may well send you a Form 1099-A or 1099-C for the canceled debt. The difference between the FMV of the car and the forgiven debt MAY be considered taxable income to you if the vehicle is worth less than the outstanding debt. The finance company must actually cancel or forgive the debt for this to happen.
2007-08-09 01:03:45 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
The IRS won't send you a 1099, the dealer who repossessed it will.
2007-08-09 04:11:51 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
Repossessed not reprogest
2007-08-09 00:20:55 · answer #3 · answered by E M 4 · 0⤊ 0⤋