debt settled through a collection agency?
I keep hearing about people settling debts and the comments regarding state if they settle, they will have to claim the difference to the IRS….my account was turned over to a collection agency, I owed a little over 0.00..the collection agency sent me a letter stating they were willing to settle for I think it was somewhere around 0.00, I paid the 0.00 (this happened about 3 years ago)..should I have reported it to the IRS??
is there like a statute of limitations – meaning after X amount of years there is nothing the IRS can do if this error is not caught?
I can’t fix my typo!..if the error is caught in 2010, can the IRS still fine me?