I received a 1099-c from discover. The account has not been active for some time and I did not agree to a cancellation. My last payment on the account was made in August 2005. The debt is more than 7 years old. It has not been on my credit report for some time. Do I have to pay taxes on this even though the debt is so old?

if you don’t agree with the information on the Form 1099-C,you need to contact the lender.The lender should issue a corrected form if the information is determined to be incorrect. Many taxpayers are unaware of the Internal Revenue Code's requirement that cancellation of indebtedness income is included in gross income. As a result, many taxpayers inadvertently exclude these amounts from their individual income tax returns. Typically, the IRS has three years in which to assess the taxpayer with an amount due. The period is extended to six years when the taxpayer omits gross income in excess of 25 percent of the gross income reported on the tax return. The three- or six-year period covered by the statute of limitations begins on the date the taxpayer files his individual income tax return. In instances where the taxpayer subsequently amends his income tax return, the three- or six-year period is typically reset, or starts again at zero.In addition, the statute of limitations applies only to returns in which the omission of income is inadvertent. There is no statute of limitations for fraudulent omissions.

If you are having difficulty resolving a tax problem (such as one involving an IRS bill, letter or notice) through normal IRS channels, the Taxpayer Advocate Service may be able to help. For more information, you can also call the TAS toll-free case intake line at 1-877-777-4778, TTY/TDD 1-800-829-4059.