RDNKCPA Posted March 3, 2014 Report Share Posted March 3, 2014 I have a client that loaned personal money to his 1120 C corp several years ago. He's winding down his business this year and the business is paying off the loan. He cut himself a $10,000 check for the accrued interest on the original not amount. I reported the 10K on his personal return, should I generate a 1099-INT for this transaction? Thanks. Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted March 3, 2014 Report Share Posted March 3, 2014 I don't do any C-Corps with any regularity but just wondering if the same ordering rules that apply to an S-Corp shareholder apply to a C-Corp shareholder. I would think the 1099INT should be generated. Quote Link to comment Share on other sites More sharing options...
Lee B Posted March 3, 2014 Report Share Posted March 3, 2014 File the 1099 - INT. There will a one month late filing penalty. But that will protect your client from a much larger penalty for not filing at all. From a small sample over the years, whatever computer matching the IRS may do seems to concentrated on the recipient not on the payor, but that's not much comfort if your client's the one that receives the penalty. 1 Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.