Identity Theft Manifesting Itself Through Surprise Arrival of IRS Form 1099-C

I've been asked 3 times in the last 24 hours or so about how and why an IRS 1099-C form was received when one was not expected because no debts were cancelled. The IRS 1099-C form is used by qualified lenders to report to the IRS as Income the Cancellation of a tax payer's debt, presuming debt was cancelled. Unfortunately I'm sad to report that this is the time of the year when many taxpayers find out through mysterious ways such as unsuspecting arrivals in the mail of IRS form 1099-C from a collection agency that they have been a victim of identity theft. If this happens to you this is what I recommend.

First contact the issuer of the 1099-C and explain that you suspect that you are a victim of identity theft because the 1099-C was issued incorrectly. Depending upon the agency you can expect a wide range of responses from radio silence to actually offering assistance and direction in seeking relief.

If you get an uncooperative or reticent response then insist in writing that a 'corrected 1099-C' be issued by a specific date. If you find the issuer still uncooperative then you should submit a copy, not the original documents, of your valid Federal or State issued identification, such as a social security card, driver's license, or passport, etc, along with a copy of a police report and/or a completed IRS Identity Theft Affidavit - Form 14039 . Send these documents to the IRS using one of the following options: Mailing address: Internal Revenue Service P.O. Box 9039 Andover, MA 01810-0939. FAX: Note that this is not a toll-free FAX number 1-978-247-9965. You should also contact the IRS Identity Protection Specialized Unit, toll-free 1-800-908-4490 for guidance. Hours of Operation: Monday – Friday, 8:00 a.m. – 8:00 p.m. your local time