Has anyone every filed a S-Corp tax return that had a 1099-C issued to the S-Corp and the S-Corp went insolvent? i have done about 6 personal tax returns with form 982 and attaching a negative net worth spreadsheet. Would you do the S-Corp the same way? Remember, these expenses that were charged, now a COD, were deducted as a business expense on a the S-Corp's previous tax return.
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Off the top of my head
I have never seen an S Corp that had debt in the name of the corp so obviously I have never seen one that had such debt cancelled. However I have never seen the reason to include in a tax return anything that was not required by some authority unless there was a specific place for it provided on a Form. I believe such Statements get ignored because the clerk keying the return has no way to type them in. Another employee will look at what gets typed in and determine whether more information is needed. If it is a letter will come and a response will be considered perhaps even with care and intelligence.
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