Re: Clarification on 1099


Posted by NJD on June 25, 2007 at 13:53:35:


In Reply to: Re: Clarification on 1099
Posted by Henry_Ca on June 25, 2007 at 10:39:23:

"because the short pay specialist can have the lender agree not to issue a 1099"

Though the loss mit rep might agree to that, and subject its employer to a small fine, the burden is always on the taxpayer to report income irrespective of the issuance of a 1099 or not. Ignorance of the tax code is no excuse. Forgiveness of debt triggers a tax event. It's better to report the income arising from forgiven debt and deal with it than fail to report it and then be subjected to additional fines, penalties, and interest.


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