Incorrect 1099C Forms

[DaveO]

I'm hoping this is not a trend but I've had two clients receive 1099C form for events which took place years ago. One had a 2006 form issued for Credit Card debt canceled in 2003 and today another client received a 2008 form for a car repo'd in 1998.

Anyone else seen this?

[solomon]

I'm hoping this is not a trend but I've had two clients receive 1099C form for events which took place years ago. One had a 2006 form issued for Credit Card debt canceled in 2003 and today another client received a 2008 form for a car repo'd in 1998.

Anyone else seen this?

The bank may have been using the 36 month testing period for the one issued in 2006 as the identifiable event.

[joanmcq]

Yeah, I've seen this happen. A lot of times it is when a new bank buys the old one and is cleaning out the books. The debt may have not 'officially' been cancelled until now, or the 1099 could be issued in error by the new bank.