A question regarding COD1099-C

[rfk]

Company card was filled out and issued in officer / employee's name - my client. Card was used by employees by now defunct company. When company closed, COD occurred and now my client's neck is on the line for outstanding debt (imputed tax) owed. He did not realize that he would ultimately be responsible for any debt outstanding when he was initially getting the card. Probably thought everything was going to be fine and had no knowledge of possible fallout from this.

I wonder if something can be done with existing company records / tax return or something to hold harmless my client's debt cancellation. He is looking at about $2,200 of tax owed for 2008. Card company won't do anything about re-issuing in name of company, so...

Any suggestions on how to pass along the debt to corporation instead of individual officer / employee through the eyes of the IRS?

Thanks for help in advance.

rfk

[S T]

What EIN#

Giving you a bump, and also an interesting scenario

What Taxpayer ID# and name was the 1099C issued to

Was it the Taxpayer's individual SSN# or the Company's EIN#

did your T/P have to personally guarantee the Credit Card?

I suspect in 2010 will we see or receive more of these

Sandy

[rfk]

Sandy...

Giving you a bump, and also an interesting scenario

What Taxpayer ID# and name was the 1099C issued to ------ It was issued in his SSN and name, this is the problem

Was it the Taxpayer's individual SSN# or the Company's EIN# ------- TP"S SSN

did your T/P have to personally guarantee the Credit Card? ------- I am not sure if he personally guaranteed the card.

I suspect in 2010 will we see or receive more of these ------ I hope we can defend their situation legitimately.

rfk

[Davc]

If it's in his name he doesn't need to guarantee the card.