This is an excerpt of a presentation I’ve given to businesses about Form 1099. Let’s start with the different types of 1099s and what they are used for.
Can I send a 1099-C to a non-paying customer? The IRS says “not so fast.”
Can a business issue a Form 1099-C to a deadbeat client? Yes. Should a business issue a 1099-C to a deadbeat client? Probably not.