1099-C Filings

By Matthew M. Young, Attorney With tax season upon us, I want to remind credit unions of their obligation to timely file form 1099-Cs in cases of certain satisfied and charged off debts. A credit union that forgives or writes off $600 or more of a debt’s principal, not including amounts attributable to interest or…

The Ongoing Debate: The 1099-C and Collections

By Matthew D. Urban, Esq. The issue of whether or not a credit union, or any creditor for that matter, should issue a 1099-C after an account has been charged off is always a topic of great discussion, particularly when the creditor is interested in continuing collection efforts. As many know, pursuant to IRS regulations…

Tax Season Creates Questions for Creditors and Consumers Alike

By: Jennifer M. Monty, Esq. and Thomas Kendall, Esq. Tax season creates questions for creditors and consumers alike.  When do losses need to be taxed?  Why is a consumer taxed for forgiveness of debt?  Can the parties agree to waive the reporting requirement?  Questions surround the issue, and it’s only made more complicated by the…

Timely Collections and Form 1099-C

The following is an article reprinted with permission from the upcoming Winter 2009 edition of The WWR Letter:  By: Matthew M. Young, Esquire With the start of a new year, we are only months away from everybody’s favorite deadline—April 15th.  While filing taxes are among the most dreaded activities, a basic understanding of the Tax Code and what must…