AmeriCredit Financial Services, Inc. Americredit Fraudulent 1099-C Forms for Tax Year 2010 Fort Worth, Texas

Then explain this to me and the others that are going to sue here shortly. The tax code says that when a debt is charged off it MUST BE claimed on the 1099-C form for the TAX YEAR that the debt was charged off in. For me that was 2002, which means the 1099-C form, according to the tax law and IRS Publications had to be TO ME no later than the 28th of February of 2003 for tax year 2002 when the debt was charged off so that I could claim it as income and pay the taxes then. Why did they decide to wait 9 to as much as 20 years later for some people to send out these forms when they knew what the IRS publications required?

Do they get some sort of tax immunity being a big corporation? The answer is yes, a big corporation, like them, can wait an unlimited time according to the tax code that my Senator sent me. If it were private citizens, it is only 7 years; but the big guys are fully protected by the IRS and some other agencies whereas we citizens are not; are only recourse for the big guys abusing the system is to sue them.

The IRS Considers charged off debts to be income to the debtor.  So once an account is charged off by the creditor (usually after 90 days of inactivity), they usually sell the debt to a 3rd party collection agency.

After a while of the Collection Agency being unable to collect the debt, and if the collection agency deems the debt uncollectable, then the company that hired the agency will file a 1099C.

Once this is done, the Company, in this case Americredit, has turned the charged off amount into income to you, and you are now required to pay income taxes on it.

Think about it, it is actually  Income to you.  Americredit repo's the car, or you turn the car back in.  You owe Americredit lets say 10k for the car and they only receive 8k.  You still owe Americredit 2k, but did not pay it, so they stop collecting on the debt, and then the IRS charges you tax on the 2k.

They could not locate you when they tried to collect, and figured the IRS would find you (which they did because their skip tracing resources are very advanced), and now you gonna have to pay a portion of what you owe.

Look at it this way, you only gonna have to pay 25pct of what  you actually owed americredit, so consider that you got yourself quite a bargin.


JUST PAY UP.  YOU GOT LUCKY

Unfortunately, you will have to pay the back taxes owed on the CP2000 statement. The IRS doesn't care about us private people out here and strangely enough, in the tax code, which my Senator was able to get me a copy of, it states that although the private citizen has 7 years to deal with, a business entity can go back an unlimited amount to time to file the 1099-C form against you. Some people have been as far back as 18 years. Americredit did this when they were bought out by GM in order to "clear" the books of old numbers. I guess if you want to, you can join the lawsuit.

What do you know..I just received a CP2000 in the mail today for the same thing. I was confused on who it was, or where it came from. Thanks to this complaint, I now know whats going on. Where do you even start to fight this battle?

Actually, I paid all of my bills and my bank DID NOT take the TARP money because it didn't need to. I never received the 1099-C because I missed one car payment and they repossessed the vehicle, sold it at auction in 2002 and I NEVER heard from them again. Strange isn't it?

Yes, I will be only too happy to mention this in my YouTube video and I now have 55 people for the class action lawsuit to proceed forward. Looking forward to collecting the money that I am owed :).

Most of the banks required TARP money in the first place was that they held Toxic Assets.  These Toxic Assets were becoming worthless.  You know what these Toxic Assets were my friend.  They were the mortgages that were made to sub primer borrowers who did not pay their bills, and these same sub prime borrowers walked away, or just stopped paying their mortgages, because the ARM's readjusted.  The Investment banks on Wall street bought these mortgages from companies like "CountryWide", "Quick Loan Funding", "Own It".  The mantra of these mortgage companies was, if you had a pulse, you would get approved. 

Wall Street bought these mortgages from these companies, and they fully expected the borrowers to pay for their homes, but of course the true nature of these sub prime borrowers came out, and they defaulted, leaving the Investment banks on Wall Street, holding worthless paper.  Hence TARP program. 

So, because of people LIKE YOU, who did not pay their bills, and left the banks holding the bag.  If it wasnt for TARP, most, if not all of the Banks in this country would have been gone.  So before you point your shitty little stick at the bank, you should look at what you did to help cause the situation. 

Be sure to mentionon your utube  video , WHY you got the 1099C form in the first place.

I never received the 1099-C form in the first place beacuse they sent it to my old address from 9 years ago. Had I still lived there, I would have recieved it on time. IRS Publication 544 states clearly that when the company charges off the debt, they must submit the 1099-C form for the tax year that it occured in by the last day of February. That would put it at about February 28th, 2002. IRS Publication 4681 states that the company only had 36 months to file this form against me. In that case, the form would have had to be sent to me around February 28th of 2005; this form was dated for December of 2011 and had my old address on it. That is negligence on their part for not doing their duty to do a soft pull of my credit report to get the right address. How does the company get away with waiting 9+ years in this case? I don't know and neither does the IRS, they just tell me to pay the thing and I did.

Right now, I am working on a YouTube video to voice my opinion on this matter about what this company did me and over 100 more like me that were former clients. Most former clients were hit with this from as far back as 18 years in some cases. The sad part is, according to the Inspector General's Office of the Trouble Asset Relief Program or TARP as it was called, General Motors, who purchased Americredit a few years ago, hasn't made their quarterly payment back to the TARP office of our tax payer dollars since the 3Q of 2009. I have the letter from the IG's office stating that; it's a matter of public record. Right now, all I want to know is, if GM can do these things to "clear out" archive files, then they should be held accountable to the IG's office for the TARP money they took to do this purchase with instead of making their REQUIRED quarterly payments. 

Sorry dude, you gonna owe.  The only way out is to prove you were bankrupt when the form came in, or that you are insolvent.  Proving you are insolvent is not a easy thing.

The way the government see's it, any money that Americredit charged off due to any balance owing after they sold your repo'd car, that they could not collect on is considered income.  You will have to pay what ever % that you are in the tax bracket for. 

Actually Americredit is required by law to report this if the amount of the charge off is over 600.00.  But now you should be able to go to the credit bureau with that 1099 C, and demand that they remove the charge off designation from your account.  I wonder if you can even get them to remove the repo, since they made this loss to them, income to you.

Point of note however, if the IRS was sent this for the 2011 tax year, I think the IRS is gonna hit  you with 25% penalty, and interest charges for not filing by April of 2012.

You gonna get hit with a big tax bill, that for sure.  Never ignore a 1099C it will get very expensive if you do

Check it out, you might get lucky. 

I recently found out from the IRS agent handling mine and other cases that GM bought out Americredit a few years ago and decided to clean out the archives. When they did this, Amercredit used everyone's old, outdated information from the archive files to file the 1099-C forms. I had to fight very long and hard to get the 1099-C form and it had my very old address on it. Anyone interested in filing a class-action lawsuit?

After fighting with the IRS over this, I have to pay the back taxes. I have in my possession the IRS tax code where it states, oddly enough, in plain English, "A company, business, financial instutition etc. that cancels a debt you owe them has an UNLIMITED amount of time to file the 1099-C form showing the disposition of the incurred debt..." If it were just me and the IRS, the IRS could only go back 7 years, but with this set of double-standards, a company can wait decades before hitting you with the 1099-C form and you have no recourse.

I did look at the IRS publication and it referred me to the IRS publication 544. Interestingly enough, both forms said that the alleged 1099-C form would have to have been filed and mailed to me by February 28th, 2003. I have decided that maybe something else should be done to these nice people. Thank you for all of your help.

Check out IRS publication 4681 to see how to handle the 1099-C
I believe there is a time limitation on when the company can file the 1099-C, but you will need to check it out. The 1099-C is supposed to be filed by the creditor when the identifiable event occurs (same year). The exception to this is non-payment for 36 months. In any event, it sounds like the 1099-C was filed against you long after the 36 month period.

The only good news is this: when you pay the taxes on this debt, you are no longer liable for the debt. Contact your accountant/CPA or tax attorney for details.