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1099 Bad debt :( Do you HAVE TO receive a 1099 from the creditor for the difference of the the total balance due vs the amount settled for?

i need advice on what to say. ...I know about the $600 rule. Don't they have a choice ? I've been down this road before and some of the creditors never sent me a 1099 for the difference of more then $600. I didn't know why and I never asked. Now I'm facing it again with an amount of about $27,000. and somehow I want to try and talk them out of it, if possible. All I know is my taxes are going to be sky high.

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If the creditor is supposed to file a 1099 and doesn't, they can get in trouble with the IRS. That $27,000 counts as income, which is why it's taxable. Perhaps the other creditors in the previous go-round weren't diligent in their record-keeping.

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