13Sep/092
What bering does a 1099 have on a loan?
Annie asked:
I have a loan with a former employer that I currently cannot pay back and the company sent me a 1099 (7) Nonemployee Compensation for the amount of the loan. Can one still be sued? According to the IRS this is considered as an uncollectible debt and the debt is forgiven." Does this have any weight with the suit?
Clyde
I have a loan with a former employer that I currently cannot pay back and the company sent me a 1099 (7) Nonemployee Compensation for the amount of the loan. Can one still be sued? According to the IRS this is considered as an uncollectible debt and the debt is forgiven." Does this have any weight with the suit?
Clyde
September 13th, 2009 - 21:57
Gary
Nohting to do with a law suit.
Since the debtor cannot collect the loan, they have reported it as if the amount you borrowed was a payment of income. This is taxable and you need to report it on your tax return.
September 16th, 2009 - 14:21
Patrick
Non-employee compensation means it was reported to IRS like you were self employed. Which is taxable income. You must report it on your income tax and pay the taxes on the amount.