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1099 form from Credit Card negotiated settlement

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  • birdlinski1948
    We 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
    Message 1 of 6 , May 13, 2004
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      We 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?
    • Scott Hall
      I m just a simple lad, but mathmatically and logically you can t say that a reduction of a negative is the same as an increase of a positive. A debt reduction
      Message 2 of 6 , May 14, 2004
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        I'm just a simple lad, but mathmatically and logically you can't say that a reduction of a negative is the same as an increase of a positive.
         
        A debt reduction means that you have less debt and can spend the money you already have on other things besides that debt.  It doesn't create more money to spend!
         
        No increase in money, no increase in income.  Do the math.
         
        Hope this helps

        birdlinski1948 <birdlinski1948@...> wrote:
        We received a letter from the IRS for a proposed amending of our 2002tax 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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      • jm367@bellsouth.net
        This 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.
        Message 3 of 6 , May 14, 2004
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          This 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 -----
          Sent: Thursday, May 13, 2004 1:59 PM
          Subject: [tips_and_tricks] 1099 form from Credit Card negotiated settlement

          We 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?


        • Dave Miner
          Bird -- You said: We 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
          Message 4 of 6 , May 15, 2004
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            Bird --

            You said: "We 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."

            You need to understand that in the eyes of the law, if you negotiate a
            reduction in debt, it is a financial benefit to you. The position of the
            IRS is that any financial benefit has a tax bill attached to it. If you
            owed $10,000 and negotiated a $5,000 settlement, in the eyes of the law and
            of the IRS, you just received a $5,000 financial benefit. The IRS wants you
            to pay taxes on that $5,000.

            The issue is not "how can the IRS do this." The issue is, are you a
            taxpayer as defined in the Internal Revenue Code. If you ARE, then you owe
            the tax. If you ARE NOT, then you don't have to file, report the benefit,
            or pay taxes on any so-called income. It is just that simple.

            Yours in freedom,

            Dave Miner
            www.FreedomSite.net
          • Nilbux@aol.com
            In a message dated 5/15/2004 9:50:38 PM Central Daylight Time, ... You cannot get IRS to define money. You should read: Money . The Greatest Hoax On Earth
            Message 5 of 6 , May 15, 2004
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              In a message dated 5/15/2004 9:50:38 PM Central Daylight Time, smooly88@... writes:

              No increase in money, no increase in income.  Do the math.



                 You cannot get IRS to define "money."

                 You should read: "Money". The Greatest Hoax On Earth
                  written by Merrill Jenkins, inventor of the dollar bill changer.

                  I can get you a copy.




            • tmrwmr
              How do you figure? If I take a cash advance on my cc for $10,000.00 and later settle with the cc company for $5,000.00 my net profit is $5,000.00. I received
              Message 6 of 6 , May 16, 2004
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                How do you figure?
                 
                If I take a cash advance on my cc for $10,000.00 and later settle with the cc company for $5,000.00 my net profit is $5,000.00.  I received a $5,000.00 gift from the cc company and the IRS will view that as taxable income.  A word of advice, don't settle with your cc companies.  You are much better off declaring bankruptcy and discharging all of your debt.
                 
                Tom
                ----- Original Message -----
                From: jm367@...
                Sent: Friday, May 14, 2004 9:29 PM
                Subject: Re: [tips_and_tricks] 1099 form from Credit Card negotiated settlement

                This 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 -----
                Sent: Thursday, May 13, 2004 1:59 PM
                Subject: [tips_and_tricks] 1099 form from Credit Card negotiated settlement

                We 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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