Home Articles FAQ Site Map Partners
Why did I get a 1099?
A: We are not layers or tax experts, here is our opinion:
Debtors that are companies, sometimes send a 1099 tax form for the total they paid, to everyone involved with the enforcement of your judgment. They often send the 1099 for the total amount they paid - which can be confusing.
For example, let's say the debtor paid $2,000 to the Judgment Enforcer (JE), and the JE paid you $1,000. They send a 1099 to both the JE and you for $2,000.
Of course you only got $1,000, and the judgment enforcer, while they grossed $2,000 - they had expenses - the biggest paying you $1,000. So for both you and the JE, you both get 1099s for the whole amount. Do not worry about this, just keep your records together. If the government questions you about this, you can easily show you only got $1,000.
We have heard that if the creditor has written off their actual damage actual damage on their taxes as a loss, and then recovers some money on the judgment later, they should report this recovery as income on a later tax return.
Go Back To Articles JudgmentBuy.com Home Page
|Contact: John Adams at firstname.lastname@example.org|
© Copyright 2001-2017 . Entire site is protected by copyright laws. All rights reserved.