Tag: debt
Why you should think twice before relying on public service loan forgiveness
ShindelRock has recently had several clients in their residencies contemplate working for a certain hospital because of the possibility of student debt cancellation under the public service loan forgiveness program. As a word of caution, a recent CNBC article highlighted...
Understanding related party debt forgiveness
Many times a debt between related parties is reduced or forgiven. This raises many questions: Are there tax consequences as a result of this? Does the lender have a tax loss to report? Does the borrower have a gain on...
IRS to begin private collection of federal tax debts
Beginning this spring, the IRS will start to collect federal tax debt through one of four private collection agencies. The new program enables these designated contractors to collect, on the government’s behalf, outstanding inactive tax receivables. A sample taxpayer notice,...
Understanding related party debt
Many times, a debt between related parties may be reduced or forgiven. This begs the questions: Are there tax consequences as a result of this? Does the lender have a tax loss to report? Does the borrower have a gain on...
36 months of nonpayment is no longer a debt discharge reporting event
The IRS recently finalized a proposed rule issued in 2014 removing the three-year nonpayment testing period from the list of “events” for determining when debt had been discharged for purposes of issuing Form 1099-C, Cancellation of Debt, to taxpayers (T.D. 9793)....