1099-C Ally Financial

[spodo]

I received a 1099-C (Cancellation of Debt) from Ally Financial for almost 10k. I have tried reaching out to them several times and can’t get ahold of anyone. It’s an automated system and no matter what time of day I call after I enter my SS# it says there offices are closed. I am not sure what this is for, I did finance a car around 18 years ago and got laid off and let them repossess it. I never received a single letter and nothing ever appeared on my credit (have mid 830’s credit score).

Would this car repossession 17ish years ago trigger me to just now receive a 1099-C now?

 

[ashleybrook]

@spodo That’s strange. Simple Google search I found the following - see at the very end about repossession

https://www.credit.com/blog/what-you-need-to-know-about-1099-c/?amp#9

FAQs
What If You Receive a 1099-C Form on an Old Debt?
There aren’t statutes of limitations on the cancellation of debt, though the IRS does have rules about when these forms should be filed. The creditor must file a 1099-C the year following the calendar year when a qualifying event occurs. That just means the creditor must file the next year if they discharge or forgive a debt.

If the creditor files a 1099-C with the IRS, it typically must provide you with a copy by January 31 so you have it for tax filing purposes that year. This is similar to the rule for W-2s from employers and other tax forms.

However, there’s no rule for how long a creditor can carry debt on its books before it decides it’s uncollectible. So, if your debt isn’t canceled via repossession, bankruptcy or other such processes, cancellation could happen at any time. The creditor doesn’t have to tell you about it other than sending the 1099-C.

 

[eli1]

@spodo I also just recieved one. I have never used ally bank. I had a repo about 25 years ago. But I wouldn’t think that has triggered this. There’s nothing on my credit report that’s even remotely bad. I’m so confused.

 

[spodo]

@eli1 Was your original loan through GMAC? GMAC bank was rebranded in 2009 as Ally Bank.

 

[eli1]

@spodo I don’t believe so….my repo was in 2003. I believe my loan was with Wells Fargo.

 

[eli1]

@spodo I also have nothing on my credit from the original bank….as it’s been longer than 7 years. And nothing from ally bank on my credit. I’ve never received any communication from them at all. Until this letter from the irs showed up saying I owed money

 

[chestertonleddihn]

@eli1 SAME SAME SAME!! I had a car impounded due to pour life choices in 2007 and received notice from IRS yesterday that I now owe taxes on a 12,000 forgiven debt!!!

 

[faithmission]

@eli1 I’m going to be 70 years old and living off my SS Back in 2008 I lost my house,my husband and I sold all my stuff to get out of Vegas because I didn’t know what to do so I packed the car up and drove cross country with my daughter and my 2 dogs. When I got settled I TURNED the car in. I go to do my taxes and the letter popped up from 2008.Never got a letter or any communication. I never received anything saying that they (Ally)bought the company. This is awful!!!!!!

 

[lily_lost]

@spodo I received a 1099-C form from Ally as well. The first time I called I spoke to someone who couldn't give me any information. She asked for an account number and there was no account number. There was a weird tracking number but that didn't work. I was so upset. What the heck is this debt cancellation for?
I have been on the phone now for over 2 hours and 20 minutes and still, no one answers. The automated voice says, my wait time is less than 30 seconds. This is a crock of bull. From what I read from everyone, what would happen if I don't include this in my taxes?

 

[spodo]

@lily_lost My CPA said they the IRS is sent the 1099-C info at the same time the 1099-C is sent to you. So they have notice of it. Did you happen to finance a vehicle in the last 20 years through GMAC?

 

[lily_lost]

2 hours 40 minutes

 

[quake]

@spodo I also just received one for a debt of 5055 dollars I've never heard of. They have my social and everything I'm concerned that it's fraud

 

[spodo]

@quake I finally got ahold of someone and they said it’s from back in 2008 when I let a car get repossessed. Weird thing is I never got a single letter since then and nothing ever showed up on my credit. I had no idea I owed anything. Frustrating.

 

[ddfne2or97]

@spodo Was it financed through them? I received one today, but have never used them for anything.

 

[spodo]

@ddfne2or97 It was financed through GMAC (General Motors).

 

[najah7791]

@spodo Ohhh my repo was GMAC as well.. That was back in 2007. Oh wow. So we have to claim it on our taxes? Did ally buy out GMAC?

 

[najah7791]

@quake I thought it was fraud too. I don't even see it on my credit report

 

[johnlittleelm]

@spodo I for one too !!!! Same thing 2006 bought car ,traded it in no debit! I call no one picks up . Wtf

 

[najah7791]

@johnlittleelm I'm currently on hold. Did you reach them yet?

 

[najah7791]

@spodo I got the same thing in the mail. I never financed a car by them. I had a repo back in 2007. But that was financed thru GMC. I tried calling them earlier I was on hold for 2 hours waiting. Did you get any luck with speaking to someone