As you may
be aware, Internal Revenue Code section
6050P, as amended, establishes a
reporting requirement for certain
discharges of indebtedness. For several
years, there has been ongoing debate
regarding the necessity to provide a
Form 1099-C to any individual that
receives a debt cancellation benefit
under a GAP waiver program. This issue
recently resurfaced, probably in light
of the new regulations issued by the IRS
as set forth in Internal Revenue
Bulletin 2004-45 dated November 11, 2004
(the "New Regulations").
Since
Hibernia Mitchell Insurance Services is
prohibited from rendering any legal
advice, we strongly recommend that you
consult your tax advisor and/or tax
attorney to determine the applicability
of the Code Provision and the New
Regulations to your organization.
Hibernia Mitchell
Insurance Services
Telephone: 800.777.6369
Fax: 925.939.0809
Email: info@hminsure.com P.O. Box 8061, Walnut Creek, CA
94596-8061
