Consumer complaint received 2019-08-23
Company: NAVY FEDERAL CREDIT UNION
State: FL
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Other features, terms, or problems
Sub-issue: Other problem

Complaint:
As stated in Department of the Treasury - Internal Revenue Service Publication 1212 Guide to Original Issue Discount ( OID ) Instruments ; OID is a form of interest. It is the excess of a debt instruments stated redemption price at maturity over its issue price ( acquisition price for a stripped bond or coupon ). Zero coupon bonds and debt instruments that pay no stated interest until maturity are examples of debt instruments that have OID. As stated in Department of the Treasury - Internal Revenue Service Publication 1212 Guide to Original Issue Discount ( OID ) Instruments ; The term debt instrument means any instrument or contractual arrangement that constitutes indebtedness under general principles of federal income tax law ( including, for example, a bond, debenture, note, certificate, or other evidence of indebtedness ). It generally does not include an annuity contract. 

The Company and myself entered into a contractual arrangement ( debt instrument ) which constitutes indebtedness under the general principles of the federal income tax law. The Company has obtained the Original Contractual Arrangement ( instrument ) ; hence, are considered the Holder in Due Course/ Payor and are liable for the federally withheld amount of {$2000.00}. In addition, additional payments were made which said company has failed to provide a 1099 OID regarding past payments which again, they are liable for the federally withheld amount. 

All federal credit unions are encouraged to use a double-entry accounting system. In this system each transaction results in at least two entries : a debit ( or entry on the left side of an account ledger ) and a credit ( or entry on the right side of an account ledger ). For every debit entry there must be an offsetting credit entry and vice versa. Following this rule and determining that the total debits equal the total credits can keep the records in balance. The " Asset Accounts '' record what the credit union owns. ( For example, the contractual arrangement that was signed for value received in the amount of {$2000.00} XXXX. These accounts normally have debit balances. The " Liability Accounts '' record what the credit union owes ( For example, the {$2000.00} in credit which is due to the recipient ). The " Liability Accounts '' normally have credit balances.

As the recipient who authorized said Contractual Arrangement, I am being hindered from assessing said tax accordingly in association with form 1099 OID and 1040, which said Company knowingly participated in a transaction to effectuate criminal or fraudulent avoidance of tax liability. Consequently, said company has intentionally impacted ones credit worthiness negatively regarding said Contractual Arrangement which is considered irrefutable proof that they do not respect the general principles of the federal income tax law. 

Attach you will find Department of the Treasury - Internal Revenue Service Publication 1212 Guide to Original Issue Discount ( OID ) Instruments, Pages 1 and 2 ; Emphasis on the following Definitions ( Circled ) : Original Issue Discount ( OID ) and Debt Instrument, said companys statement ( other evidence of indebtedness ) which constitutes indebtedness  under the general principles of the federal income tax law and Accounting Manual For Federal Credit Unions Topical Index ( NCUA.pdf ) : emphasis regarding the highlighted areas. 

The following forms have been prepared accordingly and are on standby should any issue arise regarding said complaint in association with NAVY FEDERAL : Department of the Treasury - Internal Revenue Service Form 3949-A - Information Referral and Department of the Treasury - Internal Revenue Service Form 211 - Application for Award for Original Information. All statements/ responses regarding said complaint will be forwarded to the Internal Revenue Service along with said forms in order to substantiate my complaint.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation