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Revision as of 19:08, 9 November 2026
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The IRS website will be allowed to tell you which tax bracket you fall under. I've had clients ask me to attempt to negotiate the taxability of debt forgiveness. Unfortunately, no lender (including the SBA) to improve to do such a product. Just like your employer is important to send a W-2 to you every year, a lender is instructed to send 1099 forms to all borrowers in which have debt forgiven. That said, just because lenders needed to send 1099s does not that you personally automatically will get hit having a huge goverment tax bill.
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