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
Starting this spring, the IRS will initiate the collection of federal tax debts using one of four private collection agencies. These agencies have been designated to recover outstanding inactive tax receivables on behalf of the government. A sample taxpayer notice,...
Understanding related party debt
Debt forgiveness between related parties often raises tax implications, posing questions such as whether there are tax consequences, potential tax losses for the lender, or gains for the borrower due to the forgiveness. However, the answers to these questions are...