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-   -   1099 form for bad debt? (https://www.askmehelpdesk.com/showthread.php?t=193164)

  • Mar 10, 2008, 02:19 PM
    khilliard
    1099 form for bad debt?
    I have heard that a lienholder can issue a 1099 Form to you for the amount of debt that you owed him. Is this true?
  • Mar 10, 2008, 02:24 PM
    ebaines
    Yes, indeed. If someone forgives debt that you owe, then you have received a taxable benefit. The IRS requires the bank toissue a 1099-C reflecting the benefit, and you must include this as income on your taxes.

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