Consumer complaint received 2024-09-14 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: TRANSUNION INTERMEDIATE HOLDINGS, INC.
State: FL

Complaint narrative:
To Whom It May Concern : LEGAL DEPARTMEMT A charge off is defined as. 

ONCE AN ACCOUNT HAS MOVED OVER TO CHARGEOFF STATUS THE LENDER HAS ACCEPTED THE FACT THEY ARE NOT GOING TO COLLECT THE DEBT. THEY HAVE FILLED THIS ON THEIR TAXES AS DISCHARGED DEBT AND NOW THIS DEBT IS CONSIDRED CANCELLED OR FORGIVEN. I SHOULD HAVE BEEN ISSUED A 1099C FORM REGARDING THE DEBT AND IT IS NOW MY RESPONSIBILTY TO FILE THIS ON MY TAXES AS INCOME. INCOME CAN NOT BE REPORTED ON MY CONSUMER REPORT AND ESPECIALLY AS SOMETHING DEROGATORY. SO, THIS CHARGEOFF ACCOUNT NEEDS TO BE REMOVED FROM MY CONSUMER CREDIT REPORT AS YOU ARE IN VIOLATION OF THE LAW A charge off is considered as income according to the IRS. I should have received a 1099C from the creditor that placed this charge off on my consumer credit report. Income is forbidden from being on a consumer credit report. According to Congress they passed a Consumer Law 15 U.S. Code 1681e ( B ) which basically states that the credit reporting agency ha the responsibility of reporting maximum accuracy to my credit report, so how are you reporting income to my credit report when CONGRESS say you are not allowed to do that and now that it is charge off status the IRS has considered it cancelled or forgiven debt. 











INTERNAL REVENUE SERVICE 1. Topic no. 431, Canceled debt Is it taxable or not?

Topic no. 431, Canceled debt Is it taxable or not?

If you borrow money and are legally obligated to repay a fixed or determinable amount at a future date, you have a debt. You may be personally liable for a debt or may own a property that secures a debt for which you may or may not also be personally liable. 

If your debt is forgiven or discharged for less than the full amount owed, the debt is considered canceled for the forgiven or discharged amount that you no longer need to pay. Cancellation of a debt may occur if the creditor can't collect, or gives up on collecting, the amount you're obligated to pay. If you own property securing a debt, cancellation of the debt may occur due to foreclosure, repossession, voluntary transfer of the property to the lender, abandonment of the property, or a mortgage modification. 

In general, if your debt is canceled, forgiven, or XXXXischarged for less than the amount owed, the amount of the canceled debt is taxable. If taxable, you must report the canceled debt on your tax return for the year in which the cancellation occurred.

However, the law provides several exceptions in which the discharged amount is not considered canceled debt. These exceptions will be discussed later.

After a debt is canceled, the creditor may send you a Form 1099-C, Cancellation of Debt showing the amount canceled and date of cancellation. Contact the creditor if you receive a 1099-C reflecting incorrect information.

If a creditor continues to attempt to collect the debt after you receive a 1099-C, the debt may not have been canceled and you may not have income from a canceled debt. Verify your specific situation with the creditor. Your responsibility to report the correct taxable amount of canceled debt as income on your tax return for the year in which the cancellation occurred remains, regardless of the accuracy of the Form 1099-C you received. 















XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  About Form 1099-C, Cancellation of Debt 1. Canceled Debts This chapter discusses the tax treatment of canceled debts.

General Rules Generally, if a debt for which you are personally liable is forgiven or discharged for less than the full amount owed, the debt is considered canceled in whatever amount it remained unpaid. There are exceptions to this rule, discussed under Exceptions, later. Generally, you must include the canceled debt in your income. However, you may be able to exclude the canceled debt. See Exclusions, later.

Example.

You owed your friend {$1000.00}. Your friend agreed to accept and you paid {$400.00} in satisfaction of the entire debt. You have canceled debt of {$600.00}.

Example. 

You owed your friend. {$1000.00}. You both agreed that you would provide your friend with services ( instead of money ) in full satisfaction of the debt. You don't have canceled debt. Instead, you have income from services. 
A debt includes any indebtedness : For which you are liable, or Subject to which you hold property. 
Debt for which you are personally liable is recourse debt. All other debt is nonrecourse debt. 
If you aren't personally liable for the debt, you don't have ordinary income from the cancellation of debt unless you retain the collateral and either : The lender offers a discount for the early payment of the debt, or The lender agrees to a loan modification that results in the reduction of the principal balance of the debt. 
See Discounts and Loan Modifications, later. 
However, upon the disposition of the property securing a nonrecourse debt, the amount realized includes the entire unpaid amount of the debt, not just the XXXX of the property. As a result, you may realize a gain or loss if the outstanding debt immediately before the disposition is more or less than your adjusted basis in the property. For more details on figuring your gain or loss, see chapter 2 of this publication or see Pub. 544.

There are several exceptions and exclusions that may result in part or all of a canceled debt being nontaxable. See Exceptions and Exclusions, later. You must report any taxable canceled debt as ordinary income on : Schedule 1 ( Form 1040 ), line 8c, if the debt is a nonbusiness debt ; Schedule C ( Form 1040 ), line 6, if the debt is related to a nonfarm sole proprietorship ; Schedule E ( Form 1040 ), line 3, if the debt is related to nonfarm rental of real property ; Form 4835, line 6, if the debt is related to a farm rental activity for which you use Form 4835 to report farm rental income based on crops or livestock produced by a tenant ; or Schedule F ( Form 1040 ), line 8, if the debt is farm debt and you are a farmer.

Form 1099-C If you receive a Form 1099-C, that means an applicable entity has reported an identifiable event to the IRS regarding a debt you owe. For information on the reasons an applicable entity files Form 1099-C, see Identifiable event codes, later. Unless you meet one of the exceptions or exclusions discussed later, this canceled debt is ordinary income and must be reported on the appropriate form discussed above.

. If you had a student loan that was discharged after XX/XX/XXXX, and the amount of the discharged loan is nontaxable, you wont receive a Form 1099-C from the lender or servicer of your student loan.. 
An applicable entity includes the following. 
XXXX. A financial institution. 
XXXX. A credit union. 
XXXX. Any of the following, its successor, or subunit of XXXX of the following. 
a. The Federal Deposit Insurance Corporation ( FDIC ).

b. The Resolution Trust Corporation ( RTC ).

c. The National Credit Union Administration ( NCUA ).

d. Any other federal executive agency, including government corporations, any military department, the U.S. Postal Service, or the Postal Rate Commission. 
4. A corporate subsidiary of a financial institution or credit union ( if the affiliation subjects the subsidiary to federal or state regulation ).

5. A federal government agency, including a department, an agency, a court or court administrative office, or a judicial or legislative instrumentality.

6. Any organization of which lending money is a significant trade or business.

For more information on the applicable entities that must file a Form 1099-C, see the Instructions for Forms 1099-A and 1099-C, available at irs.gov/instructions/i1099ac.

Identifiable event codes.

Box 6 of Form 1099-C should indicate the reason the creditor filed this form. The codes shown in box 6 are explained next. Also, see the chart after the explanation for a quick reference guide for the codes used in box 6.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with non-monetary relief