If a creditor writes off a bad debt and ceases collection and the amount of the debt is for more than $600.00, there is an IRS requirement that requires the creditor to report to the IRS the amount of the write-off on Form 1099-C which is the form that is used to report income. This means that you will have to report the debt that is written ff as income to you when you file the next year’s tax return. Thus, if you didn’t pay your credit card bill you and it is written off by the credit card company, you could find that you own income when you file your return.

There are several exceptions to this rule:

· If you discharge the debt in bankruptcy it is not considered income.

· If you are insolvent before the creditor write off the debt.

· If the debt that is written off is considered a gift.

Call Bob now at 215.550.3636 for answers to your tax questions.

SEC Info - Log Point Technologies Inc - 8-K - For 3/8/01

LOG POINT TECHNOLOGIES INC - LGPT Amended Annual Report (Small …

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Robert C Olivieri, Jr CPA - Tax & Other Tips 2008 May

robert c olivieri, jr cpa and the firm of robert c olivieri, jr pc 

performed their first public company audit on log point technologies

, inc. during the late 1990’s.

Visit our web site at www.robertcolivierijrpc.blinkweb.com or call

Bob anytime at 215.550.3636 with your tax or accounting questions.

Robert C Olivieri, Jr CPA was on the board of directors of Holy

Family College during the mid 1990’s.

Call Bob at 215.550.3636 with any tax return questions or

accounting issues concerning your business.

Robert C Olivieri, Jr became a licensed CPA in February 1984

having passed the examination in November 1983.

Bob has been in public practice since May 1988 and can be

reached at 215.550.3636 up until very late at night.

Also, visit our web site at www.robertcolivierijrpc.blinkweb.com.