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    Accounts receivable

    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.
    ChEAr$,
    Harlan Lunsford, EA n LA

    #2
    Originally posted by ChEAr$ View Post
    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?
    I'm not sure why you think a 1099-C is just for secured property. That's true for a 1099-A, not the 1099-C.

    However, the 1099-C is only required to be issued by companies that are in the business of lending money (and certain government agencies). Depending on what the product or service is, I'm not even sure if it's considered a debt in this sense.

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