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Defaulted Loan & 1099


Guest Bob Lees

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Guest Bob Lees
Posted

Have a client who finally submitted year end data for 12-31-00. They have a participant who stopped making loan payments in March 2000. Do we go back and issue a 2000 1099-R for the loan and have the individual amend their 1040 or can we issue a 2001 1099-R?

  • 5 years later...
Posted

Looking now at a similar situation where participant stopped payments in 2004, so (depending on timing) the grace period would have ended in 2004 or 2005. For reasons still unknown, the loan was not deemed and no 1099R was issued.

Should we now issue 2006 1099R, using current loan balance; or issue '04 or '05 1099R, using balance at that time? R.Butler, presumably, would go with the latter approach. Anyone think that the '06 1099R is the better solution?

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