ECAST I received a bill from the IRS statiing they received a 1099 for a cancellation of debt for over $17,000 with ECAST New York, New York
I received in the mail a bill from the IRS showing they had received not one but two 1099 forms from ECAST Settlement Corp. for Cancellation of Debt. The two reported amounts are less then a $200.00 difference and both 1099's were filled on the same date. I recently had my credit cleaned up by using a company who had any debits that were paid off or closed from my credit report and there is no mention of ECAST. ECAST can only purchase credit cards that are still open and not charged off.
When I called ECAST, I only received a recording asking to leave a message which I did. This has become a nightmare for me trying to find out what this cancellation of debt is for. I did contact the IRS and they were able to look up my 2011 taxes to verify what these two 1099's were about. While speaking with them they informed me that ECAST filed a third 1099 in the amount in excess of $12,000.00 (but they could not tell me when the third 1099 was filed). The belief is that they bought credit card debt and because the IRS does not have specific information about each of those 1099's it is quite possible ECAST may use the debit from each cards more then once.
In order for the 1099's to be filed with the IRS, the cancellation of debit on all of these credit cards has to be done in 2011 per the IRS.