Do I send a 1099??????? I have an ex client that prepaid me for some services in 2012. They then hired someone else to do thier work. I didn't have the money to repay their prepayment at that time so i asked them to take payments. They didn't accept payments and sent me a 1099-misc for the prepayments. Then in May of this year they had an attorney contact me to colloct the money. I have been making payments to them since then with 4.5% interest added on to the bill compounded monthly. How do I report this on my tax return? Also is there anything I should do since I did claim it as income last year. Don't know if it matters but the payments are made to the company not the attorney. |