• FirefoxInstall the new Firefox »
    United States


    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?
    2 months ago 3 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.)
    a few seconds 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 Quick Answers - 10 hours ago

    • People shouldn't use IRS forms for their personal business. If you are loaning a relative some money, you should know how to contact them. You should also know where your local courthouse is located. Especially if you don't loan money as part of your business. I suggest a promissory note. I also believe there is a specific date when they have to be submitted and it's specific people that are the targeted user.

      by Weneeke - 10 hours ago

    Recommended Articles

    Yahoo Small Business Services