This might get confusing ...here it is. My dear husband was in a family co that went insolvent in 2005. In 2004 he went a purchased a new van for the co in his name only. The co voluntary turned the van back to Capital One. No contact has been made by them since 2005, until Sept of last year (2012) we received a 1099 from an Onyx Acceptance for 10,000, and it's dated 2011. When we received it we called Onyx who said that it had been sold in 2006, we were not contacted on the sale either. The letter accompanying the 1099 said "We apology for any inconvenience our over sight might have caused you that this should have been sent out years ago".....

Our 2005 tax return included the loss of the co, but the van was not included..why? I don't know. It is too late to file an amendment on that return, so what now? Is there no laws or statutes that make this illegal? Penalties & interest for a year, blindsided 5 years after the fact, and dated almost a year before we received it. The co was an LLC but it was only in his name. Does that matter if he was a partner? And he purchased it from Capital One, who is Onyx Acceptance?

I don't know where to start on trying to get this taken care of. I just think it is all wrong on their end. Should I start with this Onyx co.? If they sold it in 2006 and are claiming the loss in 2011 is there not a statue of limitations here?

My acct said if I filed an amendment to my 2011 return it would probably cost me around $3000 without interest or penalties...that is just wrong considering I didn't even get it til Sept 2012.

If there is any advice here that can steer me in the right direction I would appreciate it...I'm desperate at this point