So…Your Mother-in-law Is a Partner at a Competitor of Your CPA Firm…
Perplexed by corporate fashion dos and don'ts? Need remedies for comp/bonus anxiety? Are you an auditor that needs a go-to quip for those relatives who want help with their taxes? Email us your questions and we will answer them in order of stupidity. I have an upcoming interview at a large firm, but in one of […]
Today in Bad Decisions: Borrowing Money from Your Ex-Mother-in-Law
Do you have a mother-in-law? How well do you get along with her? Not good, huh? Whatever differences you may have, surely it’s not this bad:
When a former son-in-law in Illinois failed to settle an asserted loan by his ex-mother-in-law to her satisfaction, she gave up on collecting but issued a 1099-C reporting the amount as debt forgiveness income.
Ex-Son-in-Law took it badly, and fought back. He sued Ex-Mom, claiming that because she wasn’t required to issue a 1099-C, it was fraudulent for her to do so.
Borrowing money from your mother-in-law, let alone your ex-mother-in-law is not what we would consider a good life decision. Jesus, especially if you’re a deadbeat. We understand that times are tough but hey, next time around he’ll know.
So this guy is in a tough spot. Solution? Sue her for fraud, of course! The judge in the case said someone issuing an unnecessary 1099 did not constitute fraud so the son’s only remedy now is to argue that the contents of said 1099 were fraudulent. Good luck with that, man. You’re finished.
A Victory For Bitter Ex-Mother-In-Laws Everywhere [Tax Update Blog]