Speaking of which, a client asked me a technical question about her software, but couldn't answer it cause I don't even know what a/r software she uses. In short, she didn't know how to stop statement printing for all those customers whose accounts were previously written off in previous years. Well, I'll worry about that tomorrow.
But today I got to thinking about those writeoffs. i wondered if maybe they should be reported to IRS somehow. Maybe 1099C? No, that's just for secured property.
And I don't know of any other form; anyone?
A bad debt written off is still legally due, probably up to any statue of limitations and therefore legally collectible. So maybe that is why IRS has no provision for reporting bad debit writeoffs as income to the customer.
But today I got to thinking about those writeoffs. i wondered if maybe they should be reported to IRS somehow. Maybe 1099C? No, that's just for secured property.
And I don't know of any other form; anyone?
A bad debt written off is still legally due, probably up to any statue of limitations and therefore legally collectible. So maybe that is why IRS has no provision for reporting bad debit writeoffs as income to the customer.
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