D. Kansas 1998))

Plaintiff alleges that the statements of default and the amount of the debt in the notice of default, the Notice of Acceleration, and Notice of Foreclosure Sale were misrepresentations in light of the alleged cancellation of debt represented by the Form 1099-Cs. (Compl., ¶ 26.) However, because a Form 1099-C neither operates to discharge a debt nor is an admission that the debt is cancelled, Plaintiff has failed to state “how such statements were false[.]” Humana, 133 F.Supp.3d at 1076. ” Frank v. Dana Corp., 547 F.3d 564, 570 (6th Cir. 2008) (quoting Gupta v. Terra Nitrogen Corp., 10 F.Supp.2d 879, 883 (N.

Specifically, Plaintiff’s con claims rely upon a mistaken presumption the Mode 1099- Cs actually terminated section of their personal debt. (Compl., ¶ twenty-six.) Whatsoever, Plaintiff alleges you to Swinging Defendants incorrectly depicted during the sees away from standard, velocity, as well as foreclosure business one to Plaintiff was at standard and due an accelerated obligations regarding $399, “Following defendants mentioned with the Internal revenue service that everything $291,000 out-of [the latest changed financing equilibrium of $325,] was terminated[.]” (Compl., ¶¶ 9, 26.) Mainly because so-called misrepresentations regarding the sees out-of standard, acceleration, as well as property foreclosure sales taken place after the initial 1099-C, Plaintiff claims that “[t]here shall be definitely that Defendants knew that representations made in the fresh foreclosures sees was in fact not true[.]” (Compl., ¶ twenty six.)

However, a Form 1099-C is an informational filing that neither cancels the debt nor is an admission that the debt has been or will be cancelled. You.S. v. Reed, 2010 WL 3656001, at *2–3 (E.D. Tenn. 2010) (“[A] Form 1099–C, as a matter of law, does not operate to legally discharge a debtor from liability on the claim that is described in the form.”); Information Letters, IRS INFO 2005-0207, 2005 WL 3561135 () (“The Internal Revenue Service does not view a Form 1099-C as an admission by the creditor that it has discharged the debt and can no longer pursue collection.”); F.D.We.C. v. Cashion, 720 F.3d 169, 179 (4th Cir. 2013) (“We find the IRS’s view persuasive because it fully encompasses the purpose of a Form 1099–C as an IRS reporting document and follows the plain language of the relevant regulation.”); Money One, Letter.A. v. Massey, 2011 WL 3299934, at *3 (S.D. Tex. 2011) (“The IRS does not view a 1099–C as a legal admission that a debtor is absolved from liability for a debt.”).

Ocwen Loan Upkeep, LLC

There are three main takeaways from these regulations: a creditor “must” file a Form 1099–C when one of several events occur; one of those events is an agreement between the parties to discharge the debt at some point in the future; and when a creditor files the form, they are satisfying an IRS reporting obligation, but they are not necessarily discharging the debt Walker v. , 2017 WL 2957933, at *3 (D.N.J. 2017) (emphasis added) (“Ocwen’s Form 1099–C contains neither a misrepresentation nor incorrect statement.”). The Fourth Circuit in Cashion also interpreted the following regulation to mean that a Form 1099-C does not a discharge a debt since a discharge may be deemed solely for reporting purposes by virtue of an identifiable event (as defined in subsection (b) of the regulation), regardless of whether the debt was actually cancelled: any applicable entity … that discharges an indebtedness of any person … must file an information return on Form 1099–C with the Internal Revenue Service. Solely for purposes of the reporting requirements of [the applicable statute and this regulation], a discharge of indebtedness is deemed to have occurred … if and only if there has occurred an identifiable event described in paragraph (b)(2) of this section, whether or not an actual discharge of indebtedness has occurred on or before the date on which the identifiable event has occurred. F.D.We.C. v. Cashion, 720 F.3d 169, 178 (4th Cir. 2013) (quoting 26 C.F.R. § 1.6050P–1(a)(emphasis in original)).