Loan Default

[Doghouse]

My client's defined benefit plan extended an unsecured $150,000 loan to an unrelated person. That debt has become uncollectable, and as the plan is terminating, the client's intent is to write it off.

My question - is there any 1099 reporting requirement for a bad debt write-off? Again, this is not a participant loan, just a general note receivable.

Thanks!

Dog

[Guest Sieve]

Yes. See IRS Form 1099-C.