Heads up... just became aware of IRS bulletin # 2004-45 dated 11/8/04 regarding how to report discharges of indebtedness (i.e., chargeoffs). Corresponding Federal Register document is dated 10/25/04, Vol 69, #205, starts on page 62181.
Haven't reviewed it yet to see if/how it affects our consumer lending area.

Quote:

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regarding how to report discharges of indebtedness (i.e., charge offs).

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Be careful here, charging off an account is not a discharge of the debt. The IRS reporting (and I haven't read the update you posted) is required when you no longer deem the debt collectible and you "abandon collection" of the debt.

Good catch Dan- poor choice of words on my part. Thanks for clarifying.

UPDATE- Was just advised by a subject matter expert that the IRS bulletin only expands the types of entities that must report discharged debts. It apparently does not change reporting requirements for those who are already obligated to report.