Thread: statute of limitations and the IRS? need help

Hi to all,

Thank you Erik for making a fourm that so many Americans can benefit from.

I have a question regarding the statute of limitations in Texas:

I understand that 4 years from the time the account is deemed in default is the time the credit card company has the ability to pursue legal action. After 7 years, the debt isn't supposed to even be on your report (in theory). When I was 18, I made a 1,000 cash advance on a bank credit card I had. It went into deliquency in 98, and was written off by the bank a short time later. A company bought the debt from wells fargo, who in turn sold the debt to the people who are harassing me now. This guy is threating legal action, of which he says that I owe 6K dollars. (Not really sure how interest racked up on a deliquent account). Once I told him that he was past the 4 year statute of limitations, he says now that he's going to write off the debt to the IRS, and that the IRS will send me a form requesting 40% of 6K in what he calls a "gift tax". He says that the IRS will make me pay 40% of 6K dollars; or I can pay him 560 dollars now to settle the debt. Does this make any sense?

The above mentioned debt isn't even on my credit. Didn't Wells Fargo write it off to the IRS first? I know these guys are fear mongers, and maybe I'm just looking for something to worry about. Thanks for reading such a long post. Have a merry Christmas everyone.