Allegations that Bank of America Issued Improper Tax Forms to Consumers Raises New Worries for Financial Institutions As State Law Challenges Percolate

A couple of developments from late last year involving Bank of America and its issuance of supposedly erroneous information returns are worth highlighting. One relates to Bank of America’s mortgage interest reporting on Form 1098 and the other relates to its issuance of Form 1099C addressing cancellation of debt. Both cases implicate federal and state law causes of action to remedy what the plaintiffs allege to be fraudulent or at a minimum negligent conduct by Bank of America. The plaintiffs ...