Situation
Creditors could have problems w/ debt discharges on IRS 1099-C form
Says Ken Shilson, founder of National Buy-Here, Pay-Here Dealers
2006 rules raises questions if recovery activity can continue if form is filed
Significant Points
BHPH dealers who don't sell paper not affected
Only concerns creditors who purchased dealer paper
When creditor writes off bad debt, consumer must report amount as income
Sometimes IRS completely eliminates debt, prohibits further recovery action
Suggests dealers consult tax attorney to determine if they must report 1099-C
Also whether or not collection rights are surrendered
Read Quotes Click Here for Full Digest and Source Article:
http://www.automotivedigest.com/view_art.asp?articlesID=21584
Sourced From: Used Car News, February 19, 2007
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