How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Law Educator, Esq. Your Own Question
Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Consumer Protection Law
Satisfied Customers: 118192
Experience:  Attorney experienced in commercial litigation.
10285032
Type Your Consumer Protection Law Question Here...
Law Educator, Esq. is online now
A new question is answered every 9 seconds

A question for PaulmoJD only If I lend money to someone without

This answer was rated:

A question for PaulmoJD only If I lend money to someone without charging interest on it, can the IRS come after me for the interest I didn't charge?

Reference(s) desired, and guidance pls for making that loan on say $20,000.
Thank you for asking for me again with your new question.

If no interest is charged on a loan, the IRS cannot come after you for anything regarding interest. Charging of interest is between the parties to a loan and while you should have a written loan agreement, which would state no interest, even oral loan agreements can be enforced and the IRS would have to prove you actually received interest. They cannot charge you tax on interest they cannot prove somehow that you received. It can be imputed only if they have some legal basis to impute interest, such as payments from your debtor do not match up with what you are claiming or bank records do not match up. However, as long as you have a written loan document proving no interest and the debtor is not claiming paying interest, the IRS would lose any battle to impute interest.




Thank you so much for using JustAnswer.com. I truly aim to please you as a customer, but please keep in mind that I do not know what you already know or don't know, or with what you need help, unless you tell me. If I did not answer the question you thought you were asking, please respond with the specific question you wanted answered. PLEASE use REPLY to EXPERT if you would like more information or if you feel something was not included in your answer.

Kindly remember the ONLY WAY experts receive any credit at all for spending time with customers is if you click on OK, GOOD or EXCELLENT SERVICE even though you have made a deposit or are a subscription customer. YOU MUST COMPLETE THE RATING FOR THE EXPERT TO RECEIVE ANY CREDIT, if not the site keeps your money on deposit.

Also remember, sometimes the law does not support what we want it to support, but that is not the fault of the person answering the question, so please be courteous.

PLEASE NOTE WELL WE ARE DEALING WITH LAWS OF 50 STATES PLUS FEDERAL LAWS, AS WELL AS DEALING WITH OTHER CUSTOMERS, SO PLEASE BE PATIENT AND BE ASSURED YOU ARE NOT BEING IGNORED.

There can also be a delay of an hour or more in between my answers because I may be taking a break.

You can always request me through my profile at http://www.justanswer.com/law/expert-paulmjd/ or beginning your question with “For PaulMJD…”

Law Educator, Esq. and 6 other Consumer Protection Law Specialists are ready to help you