Posted by Roger Kennedy on 9/3/06 10:50am
Msg #143222

SOX AND THE 1099-C

For you folks that have been stiffed by SOX please file a 1099-C IRS form Cancellation of Debt and let them pay the taxes on the money we have been stiffed. Anyone out there have their EIN ? That would be most useful in filing. Then let the IRS deal with the taxes they will now owe. YOU CANNOT PLAY WITH THE IRS!!!!

Reply by BrendaTx on 9/3/06 11:05am
Msg #143227

Re: SOX AND THE 1099-C -Are you sure??

Where'd you get your logic for that one, Roger? Here is what the explanation for the 1099-C is according to the publication that is linked to the 1099C:

>>Cancellation of a debt owed to a financial institution,
the Federal Government, a credit union, RTC, FDIC,
NCUA, a military department, the U.S. Postal Service,
the Postal Rate Commission, or any organization having
a significant trade or business of lending money.<<

I am not an accountant and do not pretend to know what any of this means, I'd make sure an accountant handled this one.

Reply by MC_oh on 9/3/06 11:21am
Msg #143232

Re: SOX AND THE 1099-C -Are you sure??

I do tax returns part-time Jan-Aprl. 1099-Cs are issued to people who have declared bankruptcy and have had debt cancelled which should be included in income. I can't see how money not paid by SOX would be reported on a 1099-C.

My own experience with SOX is that they report that the notary has been paid, when actually we haven't. I'm guessing then that they deduct the amount from profit as paid to contractors.

What they really need is an audit.

Reply by Roger Kennedy on 9/3/06 1:25pm
Msg #143245

Re: SOX AND THE 1099-C -Are you sure??

your are correct regarding the cancellation. By the way, filing for bankruptcy is exempt for filing a 1099-C
My only hope is that they don't give me a 1099-misc, I have done over $600 worth of business and it is reportable. I would like to know if they will actually send me one!!!

Reply by Roger Kennedy on 9/3/06 1:22pm
Msg #143244

Re: SOX AND THE 1099-C -Are you sure?? You're correct

Sorry, but I am sure there is something out there that can be done. Will need to check into that some how.

Reply by Life Saving Services - Doug on 9/3/06 1:33pm
Msg #143246

Re: SOX AND THE 1099-C -Are you sure?? You're correct

Report them to each Secreary of State as a Fraudualant Business Enterprise preying on the self employed. If someone could put a chart together showing multi-state companies that they preyed on with contact names that would help. Then also report this to the Department of Corporations as well as the city business license division in the cities that they have offices.

Reply by Life Saving Services - Doug on 9/3/06 1:34pm
Msg #143247

Re: SOX AND THE 1099-C -Are you sure?? You're correct

I left out the Dept. of Justice and of course any other related agency. But in every state that they have done business in.

Reply by JM_NY on 9/3/06 4:20pm
Msg #143255

Re: SOX AND THE 1099-C -Are you sure?? You're correct

You might be able to send them a 1099 misc. If they deducted it and it was never paid to you, you can send them one. If nothing else it will make you feel better and drive there acc't crazy as to where it came from.

Reply by taxpro on 9/5/06 4:05pm
Msg #143629

Re: SOX AND THE 1099-C -Are you sure?? You're correct

How would you justify sending them a 1099-Misc? That is for reporting income to someone that YOU have paid, in the course of your trade or business. Unless you have paid money to SOX, you'd have no grounds for sending them a 1099-Misc. I'm definitely not defending them, but you need to read the rules. A 1099-C would not be in order, either. That's for cancelled debt owed to a specified list of businesses that lend money or financial institutions. IRS doesn't think it's funny when people do this sort of thing to harass other people, even if they deserve it.

Reply by NCLisa on 9/4/06 12:26pm
Msg #143341

Report them to the IRS!

Their is a form on the IRS website to report individuals and companies that cheat on their taxes. Not paying contractors and saying that you did is cheating. I'm sure if enough notaries fill out that form, the IRS will take a good hard look at them.