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Rule on 1099C Reporting and DOD Notifications

Question: 
Regarding 1099C reporting: We made a loan to a corporation (corporation has its own TIN) and have now received Discharge of Debtor notifications on the two individuals who signed on behalf of the corporation (DOD notices reference the individuals SS#). Do we need to file a 1099C on each of the individuals for the remaining balance of the loan to the corporation?
Answer: 

by Randy Carey: If the individuals only signed on behalf of the corporation, they were not legally individually responsible for the payment of the debt in the first place, so I don't understand why there would be such a question. I think we are missing a part of the puzzle.

Answer: 

by Andy Zavoina: If the individuals signed individually as well as for the business you may have what appears to be an identifiable event. But also look at the exclusions for 1099-C reporting - bankruptcy may be an exclusion. This IRS publication has some details. I am not a tax expert and would refer you to someone who is to ensure your scenario is or is not reportable.

http://www.irs.gov/publications/p908/ar02.html

First published on 03/03/2014

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