Lady called addressing me by first name, then asked if I'd spoken with Mr. Abbott- placed me immediately on hold. I promptly hung up, however received a voice mail from Mr. Abbott addressing me by my first, middle and OLD last name requesting "a statement provided as a client has asked action be taken against me and my property"- Obviously old creditor as I haven't had than name in 10 years!
I forgot to give you the link for SOL by state. Look up your state under written contracts (which is what an auto loan would be): http://www.nolo.com/legal-encyclopedia/statut ... hart-29941.html
The laws regarding the issuance of 1099-C's are so murky that one needs a tax professional to sort it out. Here is what I read:
A debt is deemed canceled on the date an identifiable event occurs or, if earlier, the date of the actual discharge if you choose to file Form 1099-C for the year of cancellation.” In addition to the discharge of a debt in bankruptcy, one of the identifiable events is:
Quote:“A cancellation or extinguishment when the statute of limitations for collecting the debt expires, or when the statutory period for filing claim or beginning a deficiency judgment proceeding expire.”
So far, so good. It sounds like the 1099-C should be filed if the statute of limitations for the debt has run out. (The statute of limitations is a matter of state law, and varies depending on the type of debt.)
But wait. The IRS then throws in this caveat
Quote:“Expiration of the statute of limitations is an identifiable event only when a debtor’s affirmative statute of limitations defense is upheld in a final judgment or decision of a court and the appeal period has expired.”
So it appears the statute of limitations only comes into play if the debtor has been sued for the debt, raised the statute of limitations as a defense against the collection of the debt, and the creditor did not appeal the decision.
The IRS then describes another identifiable event:
Quote:“A discharge of indebtedness because of a decision or a policy of the creditor to discontinue collection activity and cancel the debt. A creditor’s defined policy can be in writing or an established business practice of the creditor. A creditor’s established practice to stop collection activity and abandon a debt when a particular nonpayment period expires is a defined policy.”
http://blog.credit.com/2012/02/what-to-do-if- ... old-debt-53603/