Have Tax Questions? Ask a Tax Expert for Answers ASAP
Yes, they should have only filed one 1099. They're not forgiving 2.2mil., they're only forgiving 1.1mil.
I would ask the lender for a corrected 1099A that changes one of the 1099s to zero
Yeah this is a tough one. The IRS instructions said that a Guarantor is not a "debtor" in the reporting for1099C sense. 1099A are not directly related to the loan so I was not clear as a Guarantor of the loan how the S Corporation that guaranteed the loan but was not on title to the asset foreclosed would be hit with a 1099A.