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Latest revision as of 22:27, 18 October 2026
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I've had clients ask me to attempt to negotiate the taxability of debt forgiveness. Unfortunately, no lender (including the SBA) has the ability to do such a thing. Just like your employer it will take to send a W-2 to you every year, a lender is were required to send 1099 forms for all borrowers who have debt forgiven. That said, just because lenders need to send 1099s does not that you personally automatically will get hit by using a huge tax bill.
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