The other weekend, my husband and I had to put a piece of furniture together. Like most men, he felt he didn’t need the instructions to put it together. I disagreed, but once I read the instructions to him I think he was relieved. I feel that sometimes following instructions are extremely helpful. I don’t believe that you should follow ALL instructions, the key is to know when to follow instructions and when not. A lot of my friends like to cook but hate to bake because of how closely you should follow instructions. Well, baking is a lot like taxes, you should follow the instructions completely. I cannot stress that enough, following the instructions will make your life so much easier when it comes to filing you 1099′s and your taxes. IRS instructions can be a bit tricky and hard to read, especially if you aren’t used to reading these documents, but keep it up and you’ll get used to them.
My little rant about following instructions came up because I was reading the instructions for 1099-A and they are very important and rather hard to read. Some of the things you need to know when filing 1099-A’s according to the IRS, is a “1099-A is for Acquisition or Abandonment of Secured Property, if you have lent money to a borrower in connection with your trade or business and, in full or partial satisfaction of the debt, you acquire an interest in property that is security for the debt, or you have reason to know that the property has been abandoned.” Basically what that means, if you have loaned someone money and the borrower gives you the property back that they borrowed the money for instead of paying back their loan you should file a 1099-A. But even if you haven’t received anything for the debt but you know that the property has been abandoned by the borrower you need to file a 1099-A.
If you need to file a 1099-A, I would suggest you check out the 1099-A instructions.
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