"Paul Thomas, CPA" wrote in message
.. .
The NFP would be required to issue a 1099-C for the cancellation of the
debt.

Good grief! But what does that mean?



That means, if done properly, the IRS will know that the for-profit entity
received a sum of money (or goods or services) that they didn't have to
pay back, and that's income to the for-profit entity in most cases.

The same thing is looming for most of the folks that let their homes get
foreclosed on. I'll bet there will be tons of folks who get bitch slapped
with taxes on their foreclosure this year.

yes - they are still allowed to advertise services on tv too, even when the
entire industry is going into, do you say, 'Savings&Loan'?

The FP entity would have taxable income in most cases.

Then the board would have a fiduciary responsibility to not do business
with that entity in the future.

AH! In this instance it insisted on continuing business with that entity,



Really now, would a reasonable person do such a thing? And that IS the
standard the Board members could be held accountable to. "Would a
reasonable person do what they did?" That's what the jury would be
deciding.

I have raised the issue with 2 new board members, and when they get their
feet under the table we will learn more. At least this allows them not to be
enveloped or ambushed in something not their making, but which may achieve
the status of an IRS audit, nevermind private suits [but that has to do with
associated business between the same parties.]

Hey - don't you boys down there go n "y'all" a yankee,



We "y'all" everybody, and proudly tell redneck jokes about ourselves.
It's how we get-r-done down here.

I do like y'all girl, Natalie Merchant, and her House Carpenter album. [she
actually recorded it here in Vt just up the road in the Windham Hill
studios.]

Phil Innes

--
Paul A. Thomas, CPA
Athens, Georgia