1099C - S Corp & settlement

[paradiddle]

I have a defaulted credit card that was in business name ( S Corps ) and I personally signed for it. Who will get the 1099c if I settle? Does it go in S Corps name or my name?

[paradiddle]

I'm learning that this may be irrelevant as I can claim insolvency personally and reduce or erase the 1099C Income. I'm still trying to avoid Ch13 and BOA offering good deals on settling.

[jwmc1]

what difference does it make? You would have to claim the income for tax purposes either way

[BCA2009]

I have a defaulted credit card that was in business name ( S Corps ) and I personally signed for it. Who will get the 1099c if I settle? Does it go in S Corps name or my name?

If the card is in the company name the 1099 would go to that entity.

It wont make a difference unless tou have a partner. If so, they would get a share of the income on their K-1

[HHM]

The 1099-C goes to both.

As for being insolvent, that is a rather technical calculation, what you think insolvency means is usually quite different than the IRS definition. So be careful with the "assumption" that you won't have any tax liability.

[paradiddle]

The 1099-C goes to both.

As for being insolvent, that is a rather technical calculation, what you think insolvency means is usually quite different than the IRS definition. So be careful with the "assumption" that you won't have any tax liability.

I am using the IRS worksheet in pub 4681
http://www.irs.gov/pub/irs-pdf/p4681.pdf

I have 359k in total debt and 292k in total assets. So that means I am insolvent...ding!!

[DeadManCrawling]

Does your settlement explicitly forgive the debt for both business and you personally?

Careful, they could accept payment on behalf of you and then pursue the debt against your corp, if it is still open. And then sell the debt to collectors, who would have every legal right to sue the company.

[paradiddle]

Does your settlement explicitly forgive the debt for both business and you personally?

Careful, they could accept payment on behalf of you and then pursue the debt against your corp, if it is still open. And then sell the debt to collectors, who would have every legal right to sue the company.

My business is dead.

[paradiddle]

I talked to my accountant and she said that the business card debt 1099C may have a problem but there may be another way around it but we need to sit down and look at it.

[paradiddle]

who is responsible for the debt?

" I have a defaulted credit card that was in business name ( S Corps ) and I personally signed for it. Who will get the 1099c if I settle? Does it go in S Corps name or my name?"

I guess to add on to my original question. I was notified that the corporation would get the 1099C (the EIN # of the corp).

So who owes the debt? Am I a co-signor? If so does that means we both owe the $$$ and that both need to be signed off on the debt?

[DeadManCrawling]

One of the largest small business companies was Advanta.

I doubt they will be sending 1099's, in case that is who you refer to. They MAY, but I think that is unlikely, since they filed BK 11 and a few weeks ago filed for liquidation.

They are trying to salvage the corporate parent, but I think that is unlikely too.

Good luck, regardless,

-dmc

[DeadManCrawling]

In general legal cases,

yes, you and the corp are equally responsible.

When the corp defaulted, the issuer had the right to pursue you, too.

I can't point to a specific case, but I doubt the IRS would have any less right to pursue, or collect on the taxes.

As of now, in our case, we have not received any 1099's for our business debts. We filed in December, and had defaulted 3 years ago, so should have gotten one by now, if it was going to arrive.