A new group of taxpayers get tax relief. In new IRS guidance, relief was extended to certain taxpayers who took out federal or private student loans to finance education at a for-profit or nonprofit school. Relief is also granted to qualified creditors who would otherwise have to file information returns and furnish payee statements to those receiving the discharges. The IRS will not assert that qualified taxpayers who receive this tax relief must recognize gross income as a result of the discharge. To avoid confusion, the IRS recommends that creditors shouldn’t furnish students with Form 1099-C (Cancellation of Debt). Call or visit our website for more information!
(Revenue Procedure 2020-11). www.mjscpa.com/