Consumer complaint received 2015-09-17
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: AZ
Product: Credit card
Issue: Identity theft / Fraud / Embezzlement

Complaint:
A XXXX was submitted to the IRS by FIA Card Services XXXX Bank of America XXXX claiming that they forgave and " cancelled '' a debt of {$8600.00} for the year 2013 XXXX the entire account balance at the time ). The IRS responded by sending me notice that my total taxable income had increased due to this submission and that I am now liable to pay more tax on 2013 's taxable income. My account XXXX the only account ever XXXX still has a balance and was never " forgiven ''. I have always made the proper payments and there 's nothing to show on any of my statements where a forgiveness of {$8600.00} happened, which was the entire remaining balance. Instead what it shows is a steady decrease as I have been making payments on time and higher than the minimum required. 
Talking with several reps at FIA Card Services I have found out there 's only a couple things they stated can happen. Send an amended XXXX to the IRS reflecting that this did n't occur, or if somehow it did, give the accurate dollar amount since it obviously did n't happen for the total balance of {$8600.00}. The IRS can then either stop the attempt to collect, or revise the amount they believe I owe based on the corrected amount. 
The other way it can go, according to the people at FIA Card Services is that the submission of a revised XXXX just does n't happen. XXXX different customer service reps with XXXX said the same thing ( possibly a script? ), which is that I " could continue to pay as I have been or just stop paying the balance. If it stays being considered a forgiven debt that I would owe the IRS the proper amount for the " increased income '', but would n't be required to continue paying the card balance off. '' If this is a realistic option then I have an important question regarding what I have paid towards the balance ( {$3800.00} XXXX since they claimed a balance of {$8600.00} was forgiven, after which the balance no longer existed according to the XXXX they submitted. I asked if those payments since then have been considered charity or maybe a gift to FIA Card Services, and if not how were they categorized? The customer service reps said again that it was up to me to " voluntarily keep paying '' that balance but it did n't look like I was obligated to keep paying XXXX very murky advice to say the least ). I asked, if the entire balance was reported to the IRS as being forgiven, then what am I paying on? How can I log into my account and see a steadily decreasing balance since early 2013 ( currently at {$4700.00} XXXX? How can they welcome me to continue to pay " voluntarily '' on a balance they took the option to write off? How can they claim " a loss '' and get whatever accounting wizardry benefit from it, and at the same time allow me to keep paying on the same " forgiven '' balance? 
In XXXX of 2013 this account was enrolled into a program I signed up for to help consolidate debts and lower interest rates a little. After the enrollment, BofA notified me the account and its card were unable to make new purchases. Apparently a XXXX auto pay was still in effect for 12 months after that point and they kept processing the payment ( the only charges made to the account after the enrollment, totaling {$1700.00} XXXX. When this was realized it was stopped & switched to my bank card. No other charges were ever made to the card since enrollment. XXXX XXXX rep said the debt " write off '' would have been for that amount only. But {$1700.00} is n't even close to {$8600.00} as reported. I asked XXXX if it 's ultimately determined a " forgiven '' debt, and I owe the IRS the amount they assessed, then how do I get back what I paid to them ( obviously in error ) since the " write off '' occurred? She said I could be sure that FIA/BofA wo n't " write me a check ''. 

They need to retract or correct the XXXX and I 'll keep paying the balance as I originally planned. Or keep the XXXX claiming a {$8600.00} write off, & return amount overpaid since the balance was " forgiven ''. They can choose one.

Company public response: Company chooses not to provide a public response
Company response to consumer: Closed with explanation