Tag: debt

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

  • March 9, 2017
  • Steve Wisinski, CPA, MAFF

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...