Question

Can you send someone a 1099 Miscellaneous Income form for a bad debt for the amount that is owed to you.?

You know 100% that you will not be able to collect the money.

Also, do you need to send a 1099-miscellaneous income form to an individual from whom you have purchased resale equipment or parts for more than $600.00?

If so, what do you do if you do not have the social security number of that person?
What is the deadline for sending a Miscellaneous-C form?
- I meant 1099-C!

5 years ago - 2 answers

Best Answer

Chosen by Asker

1. Prior to paying $600 or more to a person to whom you will later be required to give a 1099, you should insist that they give you their social security number first, before you pay them. The proper form to make this request is Form W-9.

2. If someone owes money that you know you will not be able to collect, then you can "cancel" the debt (give up on trying to make them pay and say that they no longer have to pay) and issue a Form 1099-C. (Note that it is a -C, not a -MISC.)

5 years ago

Other Answers

No, you do not issue a 1099-Misc for bad debt. You also do not issue a 1099-C. You simply do not include the money you didn't get as income.

A 1099-Misc is not issued for sales. It's for services such as labor or rent.

by v b - 5 years ago