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Tax Law (Questions About Taxes)/Income guarantee forgiveness


Our company issues 1099's to recruited physicians.  Upon recruiting we give these physician's either a recruitment loan or income guarantee.  In return they give us a work commitment for so many years and for each month worked a portion of their loan is forgiven.  At the end of each year the portion that is forgiven is reported on a 1099 so they may pay their portion of taxes on this income.  We have been using a 1099-MISC.  Is that the correct form, what box should we be reporting this income and should we be splitting out the interest and principal portion of this forgiveness?

Good morning

Are you a recruiting agency? or the actual employer?

Do you charge (and report) interest?  

How much and how long is the loan?

How often have you done this?  for how many doctors?

Where (state) are you located?

What do you do if they don't stay? how do you handle that?


Tax Law (Questions About Taxes)

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Tax and general business including hospitality related (hotel mgmt degree and experience in industry prior to obtaining ms tax and cpa).


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