D. Ohio 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. Honest v. Dana Corp., 547 F.3d 564, 570 (6th Cir. 2008) (quoting Gupta v. Terra Nitrogen Corp., 10 F.Supp.2d 879, 883 (N.

Especially, Plaintiff’s ripoff states have confidence in a misguided assumption that Form 1099- Cs in fact cancelled element of their own financial obligation. (Compl., 26.) Anyway, Plaintiff alleges you to definitely Swinging Defendants falsely depicted during the observes out-of default, velocity, and of property foreclosure deals you to definitely Plaintiff was at standard and you may owed an expidited obligations out-of $399, Following the defendants said towards Irs that up to $291,000 out-of [new altered mortgage harmony of $325,] are terminated[.] (Compl., nine, 26.) Mainly because so-called misrepresentations regarding notices out-of default, speed, and of property foreclosure business occurred pursuing the 1st 1099-C, Plaintiff states you to definitely [t]right here can be surely one Defendants knew that representations produced in the fresh foreclosure observes were not true[.] (Compl., 26.)

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. U.S. v. Reed, 2010 WL 3656001, at *23 (E.D. Tenn. 2010) ([A] Form 1099C, 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.I.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 1099C as an IRS reporting document and follows the plain language of the relevant regulation.); Funding You to definitely, Letter.A great. v. Massey, 2011 WL 3299934, at *3 (S.D. Tex. 2011) (The IRS does not view a 1099C as a legal admission that a debtor is absolved from liability for a debt.).

Ocwen Financing Servicing, LLC

There are three main takeaways from these regulations: a creditor must file a Form 1099C 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 1099C 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 1099C 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 low interest personal loans in Connecticut the identifiable event has occurred. F.D.I.C. v. Cashion, 720 F.3d 169, 178 (4th Cir. 2013) (quoting 26 C.F.R. 1.6050P1(a)(emphasis in original)).