Deemed loan - 1099 Question

[FundeK]

If you discover a loan should have been deemed in a previous tax year, do you have to issue the 1099 for the year the loan went into default, or the year in which you actually deem the loan? For example, a participant takes a loan in Jan 2003, and does not make any payments. Loan should have been deemed by June 2003, but was just discovered in 2004. Can we issue a 2004 1099? What if it crossed many years?

Thanks!!

[E as in ERISA]

EPCRS would generally allow you to issue it in the year discovered. Since the 1099 issue is generally an individual taxation issue, I think that this answer is good from the IRS's perspective because it keeps the statute open longer.