Got a 1099-C for an old debt that's about to hit statute of limitations - questions about validity and tax implications

These are all good questions. First, filing the 1099-C on your tax return doesn't extend the statute of limitations on the debt collection. These are two separate issues - tax reporting requirements versus debt collection laws. Filing the 1099-C just acknowledges you received debt forgiveness income. Regarding the incomplete information, while creditors should use your full legal name and complete SSN, the form isn't automatically invalid because of these errors. What matters is that the IRS can reasonably identify you as the recipient. The nickname and last 4 of SSN likely suffice for this purpose. The European location of the creditor doesn't exempt them from proper 1099-C filing requirements if they're doing business in the US, but it can complicate matters. The missing phone number is indeed required according to IRS instructions. This is a technical violation of the filing requirements, but it generally doesn't invalidate your obligation to report the income. If you're concerned about the form's validity, you could contact the creditor to request a corrected 1099-C with complete information, though this might "wake the sleeping bear" regarding the remaining 20%.

I went through something similar last year with a 1099-C from an old credit card. After lots of research and a frustrating experience trying to figure out what to do, I found this tool called taxr.ai (https://taxr.ai) that really helped me analyze the situation. It's specifically designed to review tax documents like 1099-Cs and identify issues. In my case, the tool flagged several problems with my 1099-C that I hadn't even noticed, including incorrect dates and a miscalculation of the discharge amount. Based on that analysis, I was able to request a corrected form from the creditor before filing, which saved me from overpaying on my taxes. It might be worth checking out since your situation has so many specific technical questions about the validity of the form. The tool can tell you if your form meets IRS requirements or if there are legitimate grounds to contest it.

Just wanted to update about my skepticism on the taxr.ai thing. I actually tried it with my own questionable 1099-C situation after reading about it here. Uploaded my form and it identified three major issues: wrong tax year (debt was actually canceled the previous year), incorrect identification number for the creditor, and a box 3 date that conflicted with their collection activity timeline. The report gave me exact IRS citations about why these errors were significant. I sent this to the creditor and, surprisingly, they acknowledged the mistakes. They ended up sending a corrected form with the proper year and information. This actually saved me about $2,700 in taxes since I was able to report it in a year when my income was lower. Wasn't expecting it to work so effectively - definitely worth checking for anyone dealing with these forms.

If you're having trouble getting answers directly from the IRS on this, I'd recommend using Claimyr (https://claimyr.com). I spent weeks trying to call the IRS about a 1099-C issue similar to yours - complete waste of time sitting on hold for hours only to get disconnected. Claimyr got me connected to an actual IRS agent in about 15 minutes. They have this system that navigates the IRS phone tree and waits on hold for you, then calls you when a human agent is actually on the line. You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with confirmed that technical errors on a 1099-C don't automatically invalidate it, but if multiple required elements are missing (like in your case), you have stronger grounds to dispute it. They also told me the statute of limitations on the debt is completely separate from the tax reporting requirement, which was a huge relief.

I need to eat my words about Claimyr. After posting my skeptical comment, I decided to try it myself since I've been trying to reach the IRS about a 1099-C situation for weeks with no luck. Holy crap, it actually worked exactly as described. I got a call back within 45 minutes telling me an IRS agent was on the line. The agent confirmed some key info about my 1099-C situation - specifically that if the creditor failed to include required information like their phone number, I can file Form 4852 as a substitute for the incorrect 1099-C. This was a huge relief since I've been stressing about this for weeks. Seriously wasn't expecting it to work so well. Going to use this for all my IRS calls from now on instead of wasting entire afternoons on hold.

Tax professional here - one thing nobody's mentioned yet is that you should check whether you might be insolvent at the time the debt was canceled. If your total liabilities exceeded your total assets when the debt was forgiven, you might qualify for the insolvency exclusion on Form 982, which could reduce or eliminate the taxable amount. Given that this debt was old enough to be nearing the statute of limitations, there's a decent chance you might have been insolvent when it was forgiven, especially if you had other debts at the time.

One thing about the partial debt amount on the 1099-C (the 80%) - this is actually common. The creditor might be planning to try to collect the remaining 20% or they may have already sold that portion to another debt collector. If they're trying to collect the remaining portion, they can't legally consider that part "discharged" for 1099-C purposes. Just be aware you might get another 1099-C in the future for the remaining amount if they eventually write that off too.

I've been dealing with a similar situation with an old debt and 1099-C forms. One thing that really helped me was keeping detailed records of all communication with the creditor and any debt collectors. Since your debt is about to hit the statute of limitations this month, I'd strongly recommend documenting the exact date when the statute expires in your state. Different states have different limitation periods (usually 3-6 years), and the clock typically starts from your last payment or acknowledgment of the debt. Regarding the European creditor - this actually might work in your favor. If they're not familiar with US tax law requirements, they may be more likely to have made errors on the 1099-C. The missing phone number requirement that you mentioned is particularly significant because it's specifically required by IRS regulations. One other thing to consider: if this debt was truly "charged off" years ago, check your old credit reports to see when it was actually written off by the original creditor. Sometimes there's a discrepancy between when debt is internally written off versus when a 1099-C is issued, which can affect the validity of the form. Have you tried contacting the creditor directly to ask about the discrepancies? Sometimes they'll acknowledge errors and issue a corrected form, especially if you can point to specific IRS requirements they didn't follow.

I'm dealing with a very similar situation right now - old debt from 2018, European creditor (in my case a UK-based company), and a 1099-C that arrived this year with several red flags. Like yours, mine is missing the required phone number and has incomplete information. One thing I discovered through research is that the statute of limitations on debt collection is completely separate from tax reporting requirements. Filing the 1099-C won't restart the collection clock, but I understand your concern about "poking the bear." For the European creditor angle - I found that many overseas companies aren't fully familiar with US 1099-C requirements. They often use third-party tax services that may not be following all the IRS guidelines properly. The missing phone number is actually a bigger deal than it might seem because it's explicitly required in the IRS instructions, not just a suggestion. Have you checked whether this creditor actually has a legal obligation to issue a 1099-C? If they don't have sufficient business presence in the US, there might be questions about whether they're even required to file these forms. You might want to research their US tax status before deciding how to proceed. Also, definitely document everything about this debt's history - when it was last active, any previous collection attempts, and the exact statute of limitations date for your state. This information could be crucial if any issues arise later.

As someone who's navigated a similar 1099-C situation, I want to emphasize a few key points that might help you make the best decision: First, regarding the 80% amount - this partial discharge could actually work in your favor. The creditor may have already written off or sold the remaining 20%, which means they can't later claim it was "discharged" if they're still actively trying to collect it. Keep an eye out for any future collection activity on that remaining balance. The technical deficiencies you've identified (missing phone number, incomplete SSN, nickname instead of legal name) are legitimate concerns, but here's the strategic consideration: challenging these errors now could potentially alert the creditor to review your account right before the statute of limitations expires. Given that you're literally weeks away from the statute expiring, I'd suggest documenting all these deficiencies thoroughly but waiting until after the limitation period passes to address them with either the creditor or IRS. This gives you the best of both worlds - protection from future collection activity AND the ability to challenge an improper 1099-C. One thing to verify: make sure you know the exact statute of limitations date for your state and the specific type of debt. Some states have different limitation periods for different types of contracts, and the clock can restart based on various actions. The European creditor angle is particularly interesting - many overseas companies use US tax preparation services that may not be fully compliant with IRS requirements, which could strengthen your case for challenging the form later.