Tuesday, September 2, 2014

Settled a debt in 2009 and the company just realized they did not send out 1099 for debt. is there a limit of time allowed to send 1099. the...

Question

Settled a debt in 2009 and the company just realized they did not send out 1099 for debt. is there a limit of time allowed to send 1099. they sent us 1099 for 2013



Answer

The short answer is no. If you don't want to have problems with the IRS, include the 1099 in your tax filings. The reason being, you owe tax on the forgiven debt. You should have gotten a 1099 for the year 2009. And just because you didn't doesn't mean anything. It is not uncommon for delays, especially if the owner of your debt was one of the banks involved in the financial crisis.



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