• Report: #654342

Complaint Review: Citibank

  • Submitted: Sat, October 23, 2010
  • Updated: Mon, April 16, 2012

  • Reported By: David B — Suwanee Georgia United States of America
701 E. 60TH STreet N Sioux Falls, South Dakota United States of America

Citibank Sends 1099C reporting cancelled debt in 2009 Sioux Falls, South Dakota

*Consumer Comment: Same Citibank Address regarding 1099C

*Consumer Suggestion: I have been trough this, here's what I found out

*Consumer Comment: Question

*Consumer Comment: go to

*Consumer Comment: advise

*Consumer Comment: You can 'Google' this- IRS LOSES CHALLENGE TO PROVE TAX LIABILITY, and read.....

What's this?
What's this?
What's this?
Is this
Ripoff Report
About you?
Ripoff Report
A business' first
line of defense
on the Internet.
If your business is
willing to make a
commitment to
customer satisfaction
Click here now..

Does your business have a bad reputation?
Fix it the right way.
Corporate Advocacy Program™

SEO Reputation Management at its best!

I received a collection notice in June of 2009 from a collections company named Capitol Management Services . The notice I received claimed that I owed approximately $3,900 to Citibank. I immediately sent a letter to them disputing the debt and requesting verification of the debt. I never received any response.

Three days ago, I receive a 1099-C from Citibank South Dakota NA, showing a debt of the same amount which was supposidly forgiven on Aug. 20, 2009. This is exactly two months to the day from the collection letter.

My question is, how can they do this since they haven't even responded to my request for proof of the debt? I have searched in vain for info on guidelines which creditors and collection agencies must follow regarding this matter, with no success until finding this site.

Does anyone know how I can find out how to deal with this situation as I don't want to spend resources on a tax attorney if I can avoid it?

This report was posted on Ripoff Report on 10/23/2010 08:18 AM and is a permanent record located here: http://www.ripoffreport.com/r/Citibank/Sioux-Falls-South-Dakota-57104/Citibank-Sends-1099C-reporting-cancelled-debt-in-2009-Sioux-Falls-South-Dakota-654342. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report.

Click Here to read other Ripoff Reports on Citibank

Search for additional reports

If you would like to see more Rip-off Reports on this company/individual, search here:

Search Tips
Report & Rebuttal
Respond to this report!
What's this?
Also a victim?
What's this?
Repair Your Reputation!
What's this?
0Author 6Consumer 0Employee/Owner
Updates & Rebuttals

#1 Consumer Comment

Same Citibank Address regarding 1099C

AUTHOR: Cachae7 - (United States of America)

Someone is making money from this situation, and maybe this information will help.

I am a private income tax preparer and have been working with my client for over 10 years.  I am available year-round and handle all IRS inquiries regarding proof of income, Amended Returns, etc.

My client received an IRS inquiry stating that he did not report 1099C Cancellation of Debt income in 2009. The IRS stated that the creditor "Citibank" has cancelled a debt on 4-24-2009, and the tax burden on this additional "income" would be $528, which includes interest.

Problem is, my client NEVER did business with Citibank. So I took the address above and wrote to it, armed with copies of the IRS information, as well as Power Of Attorney (Form 2848) giving me permission to discuss his finances with the IRS and other entities (Since I have his SS# and other personal information).

Never received a response. 

I contacted the IRS for follow-up and they sent me the following address:

Citibank South Dakota, NA

Payroll Manager

242 Trumbull Street, Suite 3

Hartford, CT  06103

I wrote to them with the same information, attachments, and Form 2848 - Never received a response.

I contacted the IRS again to explain the situation, but they need the "Cancellator" or Originator to contact them to verify that this is NOT my clients' social security number and NOT his debt, in order to remove the additional income tax.

I've called Citibank Business Payroll, they have no information.  I've contacted every branch of Citibank to locate the Payroll Manager in Hartford CT, but the address doesn't exist for Citibank. 

The only thing there is a Credit Union that has absolutely No association with Citibank!

The irony is, the mail that I wrote to both the 242 Trumbull Street, Suite 3 AND the Citibank at 701 E 60th Street N, Sioux Falls, SD  57104, were received by "someone" because they weren't returned to me as a "Return To Sender" so they (the addresses) have to exist!

And of course, they have no telephone numbers.

I am going to copy the website information here and send it to the IRS.  Maybe our Government will launch an investigation and find out WHO is doing this to rip off the public.

Respond to this report!
What's this?

#2 Consumer Suggestion

I have been trough this, here's what I found out

AUTHOR: Steve - (U.S.A.)

I went through this situation a few years back. I found out alot of interesting info, most of it GOOD!

ONLY the "original creditor who actually loaned the money can issue the 1099C and "forgive" the debt. DEBT COLLECTORS CANNOT issue these! That is FRAUD!

HOWEVER, the 1099C MUST BE ISSUED in the same tax year as the debt was forgiven in. Which means, if they were to have forgiven the debt in June of 2009, they were REQUIRED to get that 1099C to you NO LATER THAN Jan 31 2010. NO EXCEPTIONS!

In some situations, the 1099C is the best thing you can hope for! This is because once the original creditor has issued the 1099C, the debt is "FORGIVEN". It is now dead. It cannot be resold or assigned for further collections, and depending on your tax bracket, you may have just "settled" your debt for 15 cents on the dollar!

Here's what you do now. Go to the IRS website and obtain the "TAXPAYER FRAUD" affidavit, I forget the form number. Fill it out and explain that this 1099C was issued illegally, and that you never obtained any cash income from the "taxpayer" who sent the 1099C. Send this via certified mail, return reciept requested, and put the certified# on the letter itself and keep a copy for your records.

Save a copy of the above letter for when you do your taxes for this year, just in case there is a problem.

Now, file an FTC complaint for the creditor / collector refusing your request for debt validation. This is a FDCPA violation, and it is worth up to $1000, plus costs if you take it to court.

Remember, STAY OFF THE PHONE!! All communications MUST be in writing and by certified means.

Good luck!

Respond to this report!
What's this?

#3 Consumer Comment



You say that the debt was forgiven on August 20, 2009.  Forgiven by whom?  Citibank?  For how much?  $3900?  I'm guessing it was charged off as banks don't simply forgive debts of us mere mortals.

You then say you got a collection notice in June of 2009 about the debt.  Did you mean 2010?  If not, why wait a year to complain?  If you got the notice before the debt was forgiven, perhaps one hand did not know what the other was doing at Citibank?  If you got the notice after, there is nothing wrong with collecting on a charged off debt.  Your issues with validation are with the collections company, not Citibank.

Now about that 1099-C.  The IRS considers a charged off account as income so the bank must send you a 1099-C to report that income.  I'm guessing Citibank owned and charged off the account so they may have just been slow getting your paperwork out, unless you have the years wrong somewhere in your report.

In other words, the collection efforts against you and the 1099-C from Citibank are separate matters so to speak.  Your request for validation may have triggered the 1099-C though.  Maybe you got missed when Citibank did 1099-Cs last year.  You request validation and the debt collector requests the validation from Citibank.  Citibank responds to the collector in some fashion while also noticing they forgot to 1099-C you. So they do.  Again, a lot rests on the accuracy of the dates you have given.
Respond to this report!
What's this?

#4 Consumer Comment

go to

AUTHOR: Stacey - (U.S.A.)

www.budhibbs.com and check out these scumbags
Respond to this report!
What's this?

#5 Consumer Comment


AUTHOR: John - (U.S.A.)

Bud Hibbs has a lot of good info on the 1099c scam



Respond to this report!
What's this?

#6 Consumer Comment

You can 'Google' this- IRS LOSES CHALLENGE TO PROVE TAX LIABILITY, and read.....

AUTHOR: Karl - (USA)

the related articles on the web for information that might assist you.

You can also contact your Attorney General's office and see if they might be able to assist you.

You can also formulate a question, and then 'Google' that question for some free advice.


Go to the related sites for answers that might help you.

Good luck.
Respond to this report!
What's this?
Report & Rebuttal
Respond to this report!
What's this?
Also a victim?
What's this?
Repair Your Reputation!
What's this?