Wonder if anyone else has run into this. Client recieved 1099c, recorded it on return as income, paid tax on it. Ok so far. Bank that forgave debt continues to send monthly statement showing that he still owes it. Had me call bank (becuase I have notheing else to do). Collection person at the bank explianed to me that this is how they do their 1099c's. The debt is deemed uncollectable, they issue a 1099c, and they make no attempts to collect; but they keep it on their books. When I pressed him for an answer as to justification for this, I got the old "our atorneys and the seminars I went to" answer. Any idea where I should go with this? Anyone else ever run into something like this?
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I know where I would go
I know where I would go with this. I would do some "problem separation" and put it back in his lap. It's a legal issue, not a tax issue, IMO."I am proud to pay taxes in the United States. The only thing is I could be just as proud for half the money." Arthur Godfrey -
I've put it on the back burner for now, but I'm more concerned if there are other clients that this is happening to.Comment
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I think a call to the state banking commissioner would be my next step.In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.
Alexis de TocquevilleComment
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