1099-C (2011) is issued to S-Corp with S-Corp's EIN. There is another thread similar to this at: http://forum.thetaxbook.com/showthre...t+cancellation
For my S-Corp client, this (2011) will be the final S-Corp return. In the other thread it was suggested since the debt was for expenses that were deducted in a previous S-Corp return, it will now be taxable. The S-Corp never turned a profit since it started in 2009 and ceased doing business at the end of 2011. The one and only shareholder earns a W-2 salary. Does it matter whether or not the one and only shareholder is personally insolvent or not?
For my S-Corp client, this (2011) will be the final S-Corp return. In the other thread it was suggested since the debt was for expenses that were deducted in a previous S-Corp return, it will now be taxable. The S-Corp never turned a profit since it started in 2009 and ceased doing business at the end of 2011. The one and only shareholder earns a W-2 salary. Does it matter whether or not the one and only shareholder is personally insolvent or not?