In February 2013, my employer let me go owing me $20,000 in back wages, which he covered with a personal loan note. He has been repaying this with interest and sends me a 1099-MISC each year. He recently paid off the principal but still owes interest and penalties. The loan was for 2 years at $500 per month with 1% monthly interest and late charges of $40 after the due date. He offered a cash settlement for half the remaining debt, which I accepted and declared as paid. He later sent me a 1099 for the checks and cash given in 2015. I looked online and found that I can only declare the interest on a personal loan and can give him a 1099-C for debt cancellation. Can you clarify my tax obligations?

November 13th, 2023

I'm working on a tax return for a Chinese restaurant that had bank deposits of $152K but 1099-K revenue of $159K for the year. Are there any published benchmarks on what's the normal ratio of cash to credit card sales for this kind of business?

November 6th, 2024

I have a $45,000 Federal tax debt from 2002-2006 with a lien. I heard about the offer in compromise but am unclear if I qualify because I should have all of what I owe paid up to submit an offer. Do you have any advice or information that would make things clearer to me?

April 21st, 2024

I received a settlement check from JPMorgan Chase for SCRA violations related to my primary residence. Chase sent me a 1099-MISC reporting it as other income. I believe this payment should be treated as a gain on the sale of my primary residence and qualifies for exclusion of $250,000 ($500,000 for married), making it non-taxable. Am I right?

March 23rd, 2023

Even though a corporation has profits or losses, do their shareholders receive a 1099-DIV form? If a company has a profit of $8000.00, will the 1099-DIV form show dividends for that amount since I'm the only owner?

January 28th, 2023