1099 dispute question - here we go again

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Judge Roy Bean
Judge for the District of Quatloosia
Judge for the District of Quatloosia
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Joined: Tue May 17, 2005 6:04 pm
Location: West of the Pecos

1099 dispute question - here we go again

Post by Judge Roy Bean »

Borrower challenged the loan servicer's claims in court regarding the alleged debt and prior to trial came to a settlement because the servicer couldn't find its a** with both hands, let alone a real number. The borrower paid a legitimate amount, but now, for tax year 2008 the servicer sent a 1099 in showing forgiven debt for the utterly bogus claims.

Any experiences here with the form 892 process?

This kind of thing is ugly - servicers are apparently using it to strike back at borrowers who challenge them and "win."

Any cases come to mind where there were actual penalties asessed to lenders/servicers for playing the bogus 1099 game to get back at their victims? Or any in which the bona fide error defense was successful?
The Honorable Judge Roy Bean
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