Seriously wants to cry!
January 30th, 2012 at 02:02 amTold you guys our taxes were bad this year....we owed close to $4k bc we messed up our elections. Well, there is more to that sad story now. And it is really sad.
Several years ago we did a stupid thing and sold a house to a couple of sleaze bags who turned out to be criminals. We did a promissory note for a year where we carried the note and they were supposed to get their own financing at the end of the year. We did it all correctly, had a contract drawn, full closing, deeded property to them, etc. A year later they bail on the house that they trashed out, told us we could "have it back" even though it was theirs....and never paid property taxes or anything. At that time my husband wasn't working so we had 2 choices...either save our current house or possibly lose both if we try to save both. We couldn't afford both so we tried to work with the bank. This was before the housing crash so the bank was not interested in working with us at all....we did the entire bit where we submit our package of paper, they lose it 5 times, then it is outdated, we submit more, they lose it some more, etc. after several months of getting no where and losing a short sale buyer bc of the bank's inability to function, we told them to kiss our a$$ and do whatever they want with the house. We were through dealing with below average intelligence. So the house is foreclosed on, we get sued and we settle the debt with a cash payment. The following January, we get a 1099-C with the cancellation of debt amount we have to pay taxes on....which totally ate our lunch! And pissed us off. So we pay it and forge ahead.
Then last Friday afternoon, we get 2 more 1099-C's from this same bank....for the same account, one for me and my husband! Of course I call them and they are closed bc it is 4:00 in the afternoon. So I've had to wait all weekend, fretting & worrying over what this could possibly mean. While I am not surprised if it is an error, I cannot for the life of me understand how this mistake could be made. The form says the debt was cancelled in Oct 2011....but the other form was several years ago says the debt was cancelled in March of that year. So I have no idea what the heck is going on but if by some chance they don't admit this was an error, we will have to get an attorney and fight it. If we put it into our tax return, we will owe over $15k....which is bananas! I called the IRS and they said it was between us and the company....but that if we couldn't get it resolved that I should go ahead and send in the forms with our tax return with an explanation of all that took place.
So I plan to be on the phone with the bank most of tomorrow arguing if necessary....I'm just so worried this thing will go south in a hurry! Please pray for us!