Understanding IRS Forms 1099A, 1099C, and 1099 OID

Introduction

• Forms 1099A, 1099C, and 1099 OID can potentially help discharge debt.
• These forms are not widely known.

Form 1099A: Acquisition or Abandonment of Secured Property

• Used when a lender repossesses or forecloses on a property.
• Informs IRS that the property was abandoned or acquired, usually due to loan default.

Form 1099C: Cancellation of Debt

• Indicates that a lender canceled or forgave a debt, reporting it as a loss to the IRS.
• Essential for proving debt discharge for tax purposes.
• If a 1099C is filed, the debt is discharged; question why collections continue.

Form 1099 OID: Original Issue Discount

• Used when a promissory note is monetized or sold for financial gain.

Acquiring IRS Forms

• Forms can be found on the IRS website under "Forms and Instructions".
• Forms can be ordered online or via mail (up to 100 per item).

Using the Forms

• The discharged debt can be contested if a 1099A or 1099C was issued.
• Request IRS transcript to see if forms were filed without your knowledge.
• Under the Truth in Lending Act, creditors must inform you about your credit status.

Disputing Debt

• Use 1099C as proof of discharge to dispute with lenders and credit bureaus.
• If debt collectors try to collect discharged debt, present the evidence of prior discharge.
• Challenge the validity of the debt if it has been charged off.

Credit Disputes

• Dispute reported discharge debt under 15 USC 1681S-2.
• Furnishers must provide accurate information to consumer reporting agencies.

Lenders' Use of Forms

• Lenders may write off the debt, claim a tax break, and still sell the debt to collectors.
• The debt is settled if a 1099A is filed as they already took the asset.

Advanced Strategies

• Requires deep research to use forms like 1099 OID to challenge debt further.
• Explore the concept of being the actual creditor under the Truth in Lending Act.

Legal Considerations

• Filing these forms incorrectly can lead to IRS penalties or audits.
• Debt discharge strategies are legally complex and require thorough understanding.

Conclusion

• Utilize the 1099 forms to your advantage for debt discharge.
• Request 1099 forms if debt was cancelled or repossessed as they might be proof needed to halt collections.
• Undertake deep research before pursuing advanced debt discharge strategies.

Further Resources

• Consider coaching or guides for more detailed strategies on debt discharge and credit repair.