I am frantic. I just received a 1099-C Cancellation of Debt notice from Wells Fargo. I never did any business with Wells Fargo. I think that they may have purchased a debt (I cannot swear to it) from another entity who was precluded from collection ultimately because the statute of limitations ran. Assuming Wells Fargo purchased the debt (which I do not acknowledge, because I would remember such a large amount) from an already precluded debtor, can it now file such a notice?
I am frantic. Please help!!

What was the nature of the debt relief? Was it due to foreclosure on a home? If the debt relief occurred either when you became insolvent or because of home foreclosure you likely do not have an issue. As for the statute of limitations - it should still apply as long as you haven't either made any partial payments or signed anything - these this would restart the clock.

Was it precluded by a bankruptcy fiing?

It was a good answer, but I need further clarification. Does the statute of limitations have any effect on the debt buyer's right to issue a "cancellation of debt" notice?

Nightbyrd - pelase use the answer box for follow-up questions, not the comment box (I know, it's a bit confusing).

I guess I misunderstood your original question. If Wells Fargo can not sue you for repayment due to the statute or limitations, then the debt must have been forgiven. So the answer is "no" - the fact that they had to eat the debt does not mean they don't have a "right" to isue the 1099-C; in fact, they are required to by the IRS. I was going one step further - to see whether there are any tax consequences for you now that you have received the 1099-C.