CH7 filed & discharged now CC is sending W-9 forms

[Tony733]

I filed CH7 a year ago & was discharged this spring. C1 is now sending me w-9 forms to fill out and send to them for each card that was included in BK.

Their letter states that there is an IRS fine of $100 for not send theses forms back.

This is an asset BK but the BK Trustee hasn't done anything to close it for 6 months.

Should I send the w-9s back to C1 or are they trying to reopen discharged accounts?

[nceguyfromne]

I have never heard of this needing to be done after a Chapter 7. These debts were discharged by the court, not "forgiven." The amounts are not taxable. I, personally, wouldn't submit the forms. Someone please correct me if I'm wrong.

[justbroke]

The only penalty I have ever heard of for a W-9 is if you provide a "false" taxpayer ID number. You may not need to provide a W-9 to Capitol One at this point. It is usually used to "certify" your SSN (taxpayer ID) only. I suppose Capitol One is just trying to validate your SSN so that when they create the 1099-C (Forgiven Debt) form, they have the correct SSN.

I may be inclined to tell Capitol One to review the BK Petition since your SSN is certified in that proceeding.

I'm curious, though, what exactly (word for word) does it say about the $100 penalty for not sending the W-9 form back?

[Tony733]

I'm curious, though, what exactly (word for word) does it say about the $100 penalty for not sending the W-9 form back?

"Federal Regulations require us to solicit pertinent customer information from you. Also, we are required to inform you that you may be subject to a $100 penalty imposed by the Internal Revenue Service, under section 6723 of the Internal Revenue Code, if you fail to furnish this information to us upon our request."

[justbroke]

But they already have your information. That is what is funny in this situation. They already have your SSN (Taxpayer ID) and want it again? It makes no sense to me. I did not receive any and I discharged several thousand with Capitol One back in 2010.

[nceguyfromne]

I was never asked for this information from Capital One or any other creditors after my Chapter 7. My guess would be that they don't have your account(s) properly noted as IIB in their systems. That's really their problem, not yours, but it probably wouldn't hurt to call them or have your attorney call and kindly remind them that you're discharged. If they 1099 you that may create more work for on your tax return.

[holycowe]

Hi guys, We discharged over a year ago chapter 7. And few days ago my wife got the same letter including W-9 form from cap1
Just emailed my atty asking if I should fill it out and return it to cap1

[holycowe]

Btw, they didn't send it certified mail, just regular mail. So, I guess you don't have to worry about that $100 fine deadline

[bcohen]

Btw, they didn't send it certified mail, just regular mail. So, I guess you don't have to worry about that $100 fine deadline

That's right. Since there's no proof of delivery, who's to say you ever received anything?

[mlsj2009]

Phishing

I filed CH7 a year ago & was discharged this spring. C1 is now sending me w-9 forms to fill out and send to them for each card that was included in BK.

Their letter states that there is an IRS fine of $100 for not send theses forms back.

This is an asset BK but the BK Trustee hasn't done anything to close it for 6 months.

Should I send the w-9s back to C1 or are they trying to reopen discharged accounts?

These guys are just phishing for information they have either lost, or they are not who they say they are. They most likely got your SSN when you signed up for a credit card, so they should have the information. If the do not, they are not the GUSTAPO of Nazi Germany. This is the US, and until I heard from the IRS, I wouldn't sweat it. You don't have to tell them squat or answer their mail, even if it is certified. You are not required by any law that I am aware of (I don't practice law and am not a lawyer, BTW) that is going to require you to give out your personal information after the fact. If they want to know that, let them take you to court. You are already in a bankruptcy, so refer them to your lawyer.

The other possibility is that this is a scam phishing for your ID for ID theft. I wouldn't give them anything, and I wouldn't seek out trouble by delving into the situation to find out exactly who it is. Quit worrying about it, it will just make you sick. The turds are just phishing. Don't bite.

If it is C1, what are they going to do for real if you do not answer or cooperate? Whip you with a wet noodle? Turn you over to the IRS? What would the IRS do to you even if there were such a law? Fine you $100. They would still have to go through the bankruptcy court to get the money and the burden of the debt is theirs to have to prove. The IRS or C1 is not going to chase that rabbit down any hole.

By the way, what is C1, a creditor listed in your bankruptcy, doing contacting you anyway? They legally cannot if your bk has not been closed as you said. Take that up with your lawyer and file against them for violating the automatic stay.

Anyway, good luck.

[justbroke]

Actually, a creditor can send you informational messages after bankruptcy. They are not allowed to collect or harass you in order to collect. Requesting an IRS W-9 is not the attempt to collect the discharged debt. It would not be considered "illegal" or a violation of the automatic stay.

There is a process for W-9s. I'm no tax expert and offer no tax advice. Having disqualified myself as such, I don't see how that is relevant in a credit card perspective, where the taxpayer ID (TIN) was provided on the original application. But, so be it. They are probably making sure they have the correct TIN for the 1099-C, but my personal feeling (not advice) is that it's a superfluous request. If you actually read the instructions for a 1099-A/C, you will see that the IRS suggests issuing a W-9. However, it is also clear, from reading this, that if the creditor obtained the TIN prior to cancelling the debt, they don't need to issue a W-9. The IRS instructions also read that "you may use" the W-9. It is not a requirement.

So, in the end, I personally believe that a W-9 sent to a credit card customer is superfluous. I might politely tell Capitol One that you already provided your TIN on the application and it is correct. In that way, you don't disclose it in writing (again). Other than that, they do have your TIN.

(From IRS 1099-A/C Instructions)

Requesting TINs

You must make a reasonable effort to obtain the correct name and taxpayer identification number (TIN) of the person whose debt was canceled. You may obtain the TIN when the debt is incurred. If you do not obtain the TIN before the debt is canceled, you must request the debtor's TIN. Your request must clearly notify the debtor that the IRS requires the debtor to furnish its TIN and that failure to furnish such TIN subjects the debtor to a $50 penalty imposed by the IRS. You may use Form W-9, Request for Taxpayer Identification Number and Certification, to request the TIN. However, a debtor is not required to certify his or her TIN under penalties of perjury.

(emphasis added)

(Off topic, but it looks like the IRS is looking for new revenue by forcing the banks (creditors) to issue the 1099-Cs so that there is a good tax base. I don't really blame the IRS... as a let of debt has been cancelled in the last few years.)

[LadyInTheRed]

"Federal Regulations require us to solicit pertinent customer information from you. Also, we are required to inform you that you may be subject to a $100 penalty imposed by the Internal Revenue Service, under section 6723 of the Internal Revenue Code, if you fail to furnish this information to us upon our request."

First, the fine under section 6723 isn't $100, it's $50. http://www.taxalmanac.org/index.php/...g_requirements

Second, if the debt was discharged in bankruptcy, it was not cancelled. Therefore, the creditor is not required to issue a 1099-C. http://www.irs.gov/instructions/i1099ac/ar02.html If they do not have a reporting requirement that requires your SSN, how can you have a requirement to provide it to them?

I agree: Ignore it.

By the way, what is C1, a creditor listed in your bankruptcy, doing contacting you anyway? They legally cannot if your bk has not been closed as you said. Take that up with your lawyer and file against them for violating the automatic stay.

Attempting to collect the debt is what violates the automatic stay, or in the case that is already discharged, the permenent injuction. Contacting the debtor for reasons other than to collect on the debt is not a violation of the automatic stay or the permanent injunction.

[holycowe]

I'll tell my wife ignore it.....for now.
Life's so much better now. We're back on track.

[Tony733]

I filed CH7 a year ago & was discharged this spring. C1 is now sending me w-9 forms to fill out and send back to them for each card that was included in BK.

Their letter states that there is an IRS fine of $100 for not send theses forms back.

This is an asset BK but the BK Trustee hasn't done anything to close it for 6 months.

Should I send the w-9s back to C1 or are they trying to reopen discharged accounts?

Update: I never sent back the C1 w-9's.

Now I have received duplicate 1099-C's for the same account and same amount IIB. 1 under Business name with my SS number and 1 under my Name with my SS number. Both personal and business were listed in BK. This now doubles their claim.

C1 also filed a claim of assets. Does this effect their claim? To date the Trustee has made no movement to close since April 2012.

I filed form 982 for tax year 2011 and I guess I will file form 982 again for 2012.

[LadyInTheRed]

Update: I never sent back the C1 w-9's.

Now I have received duplicate 1099-C's for the same account and same amount IIB. 1 under Business name with my SS number and 1 under my Name with my SS number. Both personal and business were listed in BK. This now doubles their claim.

C1 also filed a claim of assets. Does this effect their claim? To date the Trustee has made no movement to close since April 2012.

I filed form 982 for tax year 2011 and I guess I will file form 982 again for 2012.

The 1099's have no effect on their claim in your bankruptcy.