Q: Tax Lawyer Please 1099-C for S - Corp
We had a S corp small business. Foreclosed on in 2012. We now get a 1099-c for the corp and I do not know what to do with it.
I have checked the IRS web site, not sure where to look for closed business information.
One of the sites mentioned section 108 of the tax code, that "If the business was considered closed and insolvent in 2014, then cancellation of debt is not considered income. See Internal Revenue Code Section 108".
My accountant that we had when we were in business says that he will need to do some research, kind of concerns me.
A: For handling the canceled debt in an S corporation, have your accountant potentially review (Sec. 108(d)(7)(A)) and Gitlitz, 531 U.S. 206 (2001), in case. The information presented herein is for general purposes only. It is not intended to, and may not be construed as legal, tax or accounting advice. For specific advice, please consult a tax attorney in person. Good luck. Zaher Fallahi, Tax Attorney, CPA (California).
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