Wells Fargo

[mmptysmom]

Confirmed BK13 earlier this month.WF has 1st and heloc.Someone from their bankruptcy department has been calling weekly to ", discuss options,but this is not a call to collect a debt".My arrears are being paid up thru my BK plan. I know I'm not eligible for HAMP so what do they want??? They call in the am when I'm at work and haven't gotten around to calling them back.

[tobee43]

i was getting those calls from chase....this is NOT to attempt to collection blah blah. i told them since i was closed and discharged and the house has been vacate over 5 years now i am turning their ass off to the FTC and OCC plus if they call again i will file a motion that they are in violation of the bk. don't call again. they don't call anymore.

[LadyInTheRed]

I'd call them back and see what they want. Wells Fargo was part of the National Mortgage Settlement. They could offer you a modification because of that.

[tobee43]

Lady we are STILL getting offers and by the way any monies you rec'd from the National Mortgage Settlement act is taxable if over $600

[LadyInTheRed]

Actually, it's taxable even if under $600. $600 is the point where a payor is obligated to send a 1099. The lack of a 1099 does not mean it is not taxable income.

[tobee43]

i will have to disagree with you it's ONLY over $600 that is what are firm is and has been doing for years. actually a 1099 is ONLY issued if the amount is over $600 never less. in this case the 1099S is indeed a loss for those that got that money, if they submit it correctly. (we are still attaching the 982s). one does not have to claim it at all under that $600 mark....you can compare it to the gift allowance or what is tax free when one inherits money which is now over 5 million dollars. one does not have to claim it.

to further explain many people paid money to do a loan modification, or paid fees that can be subtracted from the total issued for these fake "punishment" refunds. they were NOT intended to be income.

[LadyInTheRed]

I don't disagree that a payor does not have to issue a 1099 to somebody to whom they pay less than $600. But, if you receive $599 in income, you are still required to report it on your income tax return as gross income even though you don't get a 1099. All income is taxable to the recipient unless there is an exemption. Even if there is an exemption, you have to report the gross income unless there is a law saying you don't (like anybody whose gross income is under a certain amount does not have to file an income tax return).

It is a common misconception that if a taxpayer does not receive a Form 1099-MISC or if the income is under $600 per payer, the income is not taxable. There is no minimum amount that a taxpayer may exclude from gross income.

http://www.irs.gov/uac/Reporting-Miscellaneous-Income

Yes, the foreclosure settlement payments are taxable. If you receive a payment of more than $600, expect to get an Internal Revenue Service Form 1099 from Rust Consulting in the first quarter of 2014, as the payment will be reported to the IRS as income. If you get a payment of less than $600, it is still taxable but the paying agent will not report the amount to the IRS.

http://www.bankrate.com/financing/mortgages/foreclosure-payment-questions-answered/

A: The tax consequences of payments received under the National Mortgage settlement (NMS) depend on the unique facts and circumstances of each individual borrower. The NMS Monitoring Committee proactively sought a ruling from the IRS to provide guidance regarding the taxable status of these payments. IRS Ruling 2014-2 can be viewed here: http://www.irs.gov/pub/irs-drop/rr-14-02.pdf. The Monitoring Committee will not issue any tax forms (including a Form 1099), and your payment will not be reported to the IRS or other tax authorities. However, you should consult with your tax advisor to determine whether the payment is taxable income in your specific situation. The Settlement Administrator and the Attorneys General offices are not able to provide tax advice.

http://www.nationalmortgagesettlement.com/faq

The good news (if it can be called that) is that many settlement checks are for relatively small amounts — $300-$500 seems to be the norm — which means no 1099 will be issued to those recipients. Still, they should keep in mind that the IRS requires taxpayers to report all taxable income even if a 1099 isn’t issued.

http://finance.yahoo.com/news/double-whammy-mortgage-settlement-payments-130021868.html

[tobee43]

oh again i totally disagree and i hope the accountants that i have been working for over the past 25 years do not have their clients get audited LOL!!! never. it is a misconception depending on whether and what the income is for.

the irs has no clue about most of the the 1099 G A S and many MISC. we laugh all the time about the irs rules because so much of it is up to interpretation. we are filing them the way we are, so far, so good. it's like a cost basis analysis on IBS stock purchased over 60 years ago. the irs never questions those, never seen it. first and foremost none of these punishment refunds should have ever been issued as MISC. they should have been S. normally i would have had the clients i handle call the banks and had them reissue the 1099 which after the first 20 or so the firm decided it wasn't worth it and so we used my personal as the example with the 982, however, i also claimed a hefty capitol loss to carry over for a few years due to the banks ignorance.