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ScottyMacEsq
ScottyMacEsq, Attorney
Category: Legal
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Experience:  Licensed Texas General Practice Attorney
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I am in a retail business. if a customer defaults totally on

Customer Question

I am in a retail business. if a customer defaults totally on payments can I issue a1099 at the end of the year for the unpaid amount? I live in Indiana.
Submitted: 4 months ago.
Category: Legal
Expert:  ScottyMacEsq replied 4 months ago.

Thank you for using JustAnswer.

To the extent that you forgive the debt that is defaulted on. The 1099 is indicating income to them, and in this sense it would be forgiveness of debt income. If you don't want to forgive the debt (that is, if you want to be able to sue the customer on that amount) you can still "write off" the debt (where you take a tax deduction) but you don't forgive it completely. You can find out more about the two approaches here: http://smallbusiness.chron.com/debt-forgiveness-vs-bad-debt-writeoff-22988.html

Hope that clears things up a bit. If you have any other questions, please let me know. If not, and you have not yet, please rate my answer AND press the "submit" button, if applicable. Please note that I don't get any credit for the time and effort that I spent on this answer unless and until you rate it positively (3 or more stars). Look for the stars on your screen (★★★★★). Thank you, ***** ***** luck to you!

Expert:  ScottyMacEsq replied 4 months ago.

Did you have any other questions before you rate this answer?

Expert:  ScottyMacEsq replied 4 months ago.

I see that you have not responded in some time. Please note that this question is still open until you rate it. I believe that I have answered your question, but if you have any other questions, please let me know. If not, and you have not yet, please rate my answer AND press the "submit" button, if applicable. Please note that I don't get any credit for the time and effort that I spent on this answer unless and until you rate it positively (3 or more stars). Look for the stars on your screen (★★★★★). Thank you, ***** ***** luck to you!

Expert:  ScottyMacEsq replied 4 months ago.

I see that you STILL have not responded in some time. Please note that this question is still open until you rate it. I believe that I have answered your question, but if you have any other questions, please let me know. If not, and you have not yet, please rate my answer AND press the "submit" button, if applicable. Please note that I don't get any credit for the time and effort that I spent on this answer unless and until you rate it positively (3 or more stars). Look for the stars on your screen (★★★★★). Thank you, ***** ***** luck to you!

Expert:  ScottyMacEsq replied 4 months ago.

Hello??

Expert:  ScottyMacEsq replied 4 months ago.

Did you have any other questions before you rate this answer?

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