Where to find 2018 Form 4598 to dispute incorrect 1099-C? Still the right form for fighting erroneous debt cancellation?

So I just received a 1099-C in the mail from a credit card company claiming they cancelled about $6,800 of debt back in 2018. The problem is I never had an account with them for that amount! I think they mixed me up with someone else because I did have a card with them but it had a $1,500 limit and I paid it off fully. I've been doing some research and found mentions of Form 4598 for disputing erroneous 1099-Cs, but all the info seems outdated. Is this still the correct form to fight this? And if so, where can I find the 2018 version since this allegedly happened then? I'm worried about getting hit with a huge tax bill for cancelled debt I never actually had. The IRS website is a maze, and when I called, they put me on hold for 45 minutes before I had to hang up. My tax appointment is next week, and I need to get this sorted before filing. Anyone dealt with this recently who can help?

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18 comments

Kirsuktow DarkBlade

•8M

Form 4598 isn't actually what you need for this situation. That form is used by the IRS internally, not by taxpayers. What you need to do is contact the credit card company directly and request a corrected 1099-C. Start by calling their customer service and explaining the situation. Ask for their tax document department. They should have records of your actual account details and can verify that the 1099-C was issued in error. Get them to issue a corrected form showing zero cancellation of debt. If they're uncooperative, you'll need to dispute this on your tax return. Include a statement explaining the situation and file Form 8275 (Disclosure Statement) with your return to explain the discrepancy between what's reported to the IRS and what you're reporting. Keep all documentation showing your account was paid in full.

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Kirsuktow DarkBlade

•8M

If the company was bought out, the purchasing bank should have access to the records. Ask to speak with a supervisor or the department that handles tax documents specifically - regular customer service reps often don't know how to access older account information. If they truly can't find your records, you should request a letter from them stating they have no record of the debt in question. This documentation will help support your case. You can then file your return with Form 8275 explaining the situation and attach their letter as evidence the 1099-C was issued in error.

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Ahooker-Equator

•8M

After dealing with a similar nightmare last year (mortgage company issued 1099-C for a loan modification that wasn't actually debt forgiveness), I found taxr.ai https://taxr.ai really helpful. I uploaded the incorrect 1099-C and my account statements, and their system analyzed everything and generated a customized dispute letter explaining exactly why the 1099-C was wrong under tax law. Saved me hours of research trying to figure out the right terminology to use with both the IRS and the creditor.

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Ahooker-Equator

•8M

The dispute letter was enough for me to get the creditor to issue a corrected 1099-C. I didn't have to file Form 8275 because I was able to get the correction before I filed my taxes. The key was having the right legal language that made it clear they had made an error under tax law. It took about 3 days total - one day for the analysis and letter generation, then two days before the creditor responded and agreed to issue the correction. If you're up against a filing deadline, you can always file an extension (Form 4868) to give yourself until October to resolve this without penalties.

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Tyrone Hill

•8M

Just wanted to update - I used taxr.ai after seeing the recommendation here and it was exactly what I needed! They identified that my situation involved a case of mistaken identity (the credit card company had mixed up my account with someone else who had a similar name). The dispute letter they generated cited the exact sections of tax code showing why the 1099-C was incorrectly issued. The credit card company reviewed it and called me back THE NEXT DAY to apologize for the error. They're sending a corrected 1099-C showing $0 cancellation of debt. Such a relief! Now I can file my taxes without worrying about paying taxes on nearly $7k of phantom debt forgiveness.

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Toot-n-Mighty

•8M

If you're still struggling to get through to the IRS for guidance, I used Claimyr https://claimyr.com to actually speak with an IRS agent about my 1099-C issue. They have this system that holds your place in the phone queue and calls you when an agent is about to pick up. You can see how it works here: https://youtu.be/_kiP6q8DX5c I was super skeptical it would work since I had wasted hours on hold before, but I got connected with an IRS agent in about 45 minutes (while I was doing other things), and they confirmed exactly what I needed to do to dispute my incorrect 1099-C without triggering an audit. Definitely worth it if you need official guidance.

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Toot-n-Mighty

•8M

Yes, their system basically waits in the IRS phone queue for you. You enter your phone number and what IRS department you need to reach, and their system calls you when an agent is about to pick up. Then you just take the call and speak directly with the IRS. It saves you from having to sit with a phone to your ear for hours. I was surprised it only took 45 minutes too, but I called early in the morning on a Tuesday which apparently is a less busy time. Wait times vary depending on when you call and which department you need. During peak times it can still be 1-2 hours, but at least you're not actively waiting the whole time.

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DeShawn Washington

•8M

I need to eat some crow here. After my skeptical comment, I actually tried Claimyr myself since I was desperate to talk to someone at the IRS about my own tax issue. It seriously worked! Called at 8:15am (apparently that's a good time), and got through to an IRS agent in about 35 minutes. The agent explained that for 1099-C disputes, I needed to contact the issuer first, and only if they refuse to correct it should I file a Form 8275 with my return. She also gave me the direct line to their debt cancellation department which isn't published anywhere I could find online. Would have spent my entire morning on hold without this service. Sorry for doubting!

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Mei-Ling Chen

•8M

For what it's worth, I actually dealt with this exact problem last year. The key is to act quickly. Call the credit card company and ask for their "1099 department" specifically - regular customer service reps often have no idea how to handle these issues. If they verify it was sent in error, ask them to issue a "corrected 1099-C" showing $0 in box 2 (amount of debt discharged). Don't accept them just saying "oh, ignore it" - you need an official correction filed with the IRS or you'll get a CP2000 notice later.

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Mei-Ling Chen

•8M

You're not screwed, but you'll need to file an amended return using Form 1040-X. First, get the corrected 1099-C from the issuer showing zero debt cancellation. Then file the amendment to remove that income from your tax return. If you've already paid tax on that phantom debt forgiveness, you'll get a refund of the difference. Just be sure to include a brief explanation with your 1040-X stating that you received a corrected 1099-C (and attach a copy of it). This should be a routine correction that won't trigger any issues.

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Zoe Papadopoulos

•8M

That's a loan transfer, not debt cancellation! I had the exact same thing happen. File Form 8275 with your return and attach a statement explaining the loan wasn't cancelled but transferred. Include any documentation showing the new loan servicer has your debt (like statements from them). The IRS publication 4681 specifically addresses this - loan transfers aren't debt cancellation. Be super clear in your statement that "this was a transfer of debt to a new servicer, not debt cancellation as incorrectly reported on Form 1099-C." Also file a complaint with CFPB about the servicer.

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