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. 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.
Especially, Plaintiff’s ripoff claims trust in a mistaken expectation that Means 1099- Cs actually terminated section of their particular obligations. (Compl., twenty-six.) Whatsoever, Plaintiff alleges one to Moving Defendants incorrectly illustrated into the sees regarding standard, velocity, as well as foreclosure deals you to Plaintiff was a student in default and you can owed an expidited debt from $399, Following defendants said into the Internal revenue service that everything $291,000 from [this new modified mortgage balance of $325,] are terminated[.] (Compl., nine, 26.) Since these alleged misrepresentations regarding the notices out-of standard, velocity, and of property foreclosure sale took place following 1st 1099-C, Plaintiff claims that [t]right here is undoubtedly that Defendants realized the representations produced in the property foreclosure observes were untrue[.] (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 Oklahoma loans, 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.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 1099C as an IRS reporting document and follows the plain language of the relevant regulation.); Funding One to, N.Good. 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 Mortgage Maintenance, 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 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)).