Deatbeat client no undergoing background check

[taxea]

Rita B, good info - often wondered if we could issue a 1099-C - we are as tax prof a trade/business, and we do extend "credit" or payment arrangements to some clients???

Hmmm?

Sandy

I would recommend you have the client sign a Promissory note at the time that you extend the "loan" for tax services. Then document attempts to obtain payment. The documents will help when you take client to court for fees due. After that I would file aa 1099C. I do this with personal loans as well and rental that are unpaid. I also recommend you not take a partial payment because that starts the process all over again.

[erchess]

7216

Does anyone have any idea where I can get Form 7216 for this purpose? The versions in my software are for such times as I want to farm out the return to someone else or I want to sell them a bank product. There's not even one for they are applying for a loan and the bank wants returns.

[erchess]

Ooops

I found what I need with a google search. And it is not Form 7216 it is code section 7216. Sometimes I think tax information would be clearer if it were not in code :P

[JohnH]

But if it were not in code, anybody could do it.

[Kram BergGold]

What I do

When I get this type of inquiry I either prepare the asked for document and mail it to my client with a note telling them that I was contacted to provide the following info but I can't do that without a specific form of release, and to make things easier for me, here is the info to pass onto the person requesting it and nwo no release is required.
Or, I send my client the release form and tell them who wants what and then wait for the release form to come back to me.