1099c Problems with Collection Agency

Hey everyone! Found this site thru Google and thought I would give it a try for advice.

I am running into a problem with a collection agency. To give you some background: I was issued a 1099c form notice from the IRS and that I owed taxes on it. After doing some background searching.. it turns out it was a bill of mine back from 1994 and the CA had issued a 1099c on it.

So I paid the IRS after everything turned out legit. Now I am being contacted by the CA and they are telling me that I still owe the bill plus interest. I did further research and from the irs.gov site and from a phone call to them, I found out that I am not liable for this bill anymore once they issued the 1099c.

SO.. I call the CA back again and they are still insisting that I owe.. that the IRS is incorrect, that the 1099c is just what I owed in taxes or some BS like that... lol

I have keep records on paper of all the conversations and I even had them send me a bill stating I still owe them money.

What I am asking is, do I have a case against them and if so... what type of lawyer should I look into calling. I have to admit this is the first time I have had to look into legal matters and I am a bit lost.

Advice would be wonderful!!

Thank you!

Steely