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#273429 - 11/09/04 10:56 PM IRS bulletin- chargeoff reporting
JJohns Offline
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JJohns
Joined: Jun 2003
Posts: 682
IL
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.
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Foosball: a combination of soccer and shishkabobs- M.H.

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#273430 - 11/10/04 02:13 PM Re: IRS bulletin- chargeoff reporting
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,530
Bloomington, IN
Quote:

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




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.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#273431 - 11/10/04 02:57 PM Re: IRS bulletin- chargeoff reporting
JJohns Offline
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JJohns
Joined: Jun 2003
Posts: 682
IL
Good catch Dan- poor choice of words on my part. Thanks for clarifying.

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#273432 - 11/12/04 09:15 PM Re: IRS bulletin- chargeoff reporting
JJohns Offline
Platinum Poster
JJohns
Joined: Jun 2003
Posts: 682
IL
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.
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Foosball: a combination of soccer and shishkabobs- M.H.

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