5796Re: [tips_and_tricks] 1099 form from Credit Card negotiated settlement
- May 14, 2004This is a revenue concept straight out of the UCC in which anticipating the indebtedness is a benefit. Very abstract. Like derivatives and Enron's profits.----- Original Message -----From: birdlinski1948Sent: Thursday, May 13, 2004 1:59 PMSubject: [tips_and_tricks] 1099 form from Credit Card negotiated settlementWe received a letter from the IRS for a proposed amending of our 2002
tax years. The amended action they propose states that a debt was
forgiven and that we should have made an adjustment in our earned
imcome for that year to reflect a $5K more on our earnings. This was
due to, a debt we had negotiated for a reduced amount. How can they
state a debt was forgiven when it was negotiated for a smaller
settlement. How can they say that we enjoyed 5K more income when we
did not receive any monetary value,such as, checks, FRNs etc. Wouldn'
t the negotiated settlement be considered a new contract? Anyone have
something that I can send to the bottom feeding IRS to stop them in
their illegal tracks of trying to coerce this from me?
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