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FW: a 1099(c) debt cancellation on a 1st pushing client over Chap. 13 limit
Well I do not see us having an issue relating to personal residences
as those along with bankruptcy and insolvency are exceptions to the
discharge of indebtedness income being taxable. I only see
nonpurchase money seconds on personal residences refered to collection
agencies. For other than personal residences I see one or the other,
not both. I sublet office space to an Enrolled Agent, and have held
this discussion several times. Basically, creditors are not supposed
to be report such debts to the IRS as uncollectable until such time as
the creditor has made the effort to collect and believes the debt is
no longer collectable. Sending the debt off to a collection agent and
at the same time issuing a 1099 and reporting on a 1098 as discharge
of indebtness income would be inconsistent. Regardless I do not
believe the issuance of a 1099 for discharge of indebtness income per
se precludes collecting the debt in future if it somehow later becomes
collectable.
Mark T. Jessee
Law Offices of Mark T. Jessee
"A Debt Relief Agency"
50 W. Hillcrest Drive, Suite 200
Thousand Oaks, CA 91360
(805) 497-5868
On Mon 8/03/10 3:21 PM , "Hale Andrew Antico" bk.lawyer@gmail.com
sent:
Interesting question. What are your experiences? I'm seeing them
being exposed to one or the other. Hale
FROM: Judge_William_Hillman@MAB.USCOURTS.GOV [1]
DATE: March 8, 2010 12:39:01 PM PST
SUBJECT: RE: A 1099(C) DEBT CANCELLATION ON A 1ST PUSHING CLIENT
OVER CHAP. 13 LIMIT
What I have been hearing --- although it will probably never come
up in my
court --- is that lenders send 1099 "forgiveness" reports to IRS,
and then
give the deficiency to a collection agency. Has anyone had to deal
with
this yet. Can you forgive and still try to collect?
Judge William C. Hillman
U.S. Bankruptcy Court
Boston, Massachusetts
judge_william_hillman@mab.uscourts.gov [2]
Links:
[1] mailto:Judge_William_Hillman@MAB.USCOURTS.GOV
[2] mailto:judge_william_hillman@mab.uscourts.gov
[3] mailto:cdcbaa@yahoogroups.com?subjectFW: a 1099(c) debt
cancellation on a 1st pushing client over Chap. 13 limit
[4]
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