Company wrote off RV and sent W2 to IRS

[bldgbud]

In 1995 my RV burned to the ground. I had changed insurance companies and to make a long story short, neither one would pay off on the RV. I wanted to continue to make payments but they wanted the RV loan in full. Which I could not do. In 1996 I filed a chapter 13, this company did not send in the paperwork to the judge so payments could be set up through the court. Two weeks ago I received a letter stating the company was going to write off the RV. Today I received a letter from the IRS stating I didn't list all my income for last year and they have charged me $900 with interest. Apparently this company filed a W2 form stating $7,000 income for me. I'm on disability since 98. Can this company do this to me.... sure sounds illegal to me. Need help. Thank you.

 

[Theresagail]

Yes they can, they sent a 1099 stating they lost out on the 7k$ they would have received from you and since you did not pay for it, It becomes extra income for you during the year--- This is them Charging off the loan (Write off) they let the feds know so they can show earnings lost during the year because of loans defaulted into a charge off status

 

[bldgbud]

I can understand this if they did it many years ago. BUT, they have waited 13 yrs to do this. Isn't there a statue of limitations? It seems to me if they didn't join in on the Chapter 13 and never attempted to collect then they are out.... I thought in Calif there was a 4 yr statue for collecting contract money. Isn't this correct? It seems to me they shouldn't be able to charge off the loan now after 13 yrs and then IRS claiming it was earned income. I didn't get anything except the cost of hauling the RV away.

 

[unclemoon]

You got to not pay the balance of the loan.