Been There Done That
Ashburn,#2Consumer Comment
Thu, December 11, 2008
You may think you've won but there is one final thing you need to remember...when you "settle" an account that difference is taxed. Thats right, the IRS receives a form (1099-C) from that creditor and thats added to your income and taxed. I hope you asked these creditors if they planned on submitting this form to the IRS. If so your not done paying for the debt just yet.