George Anthony wrote:
- quote -

with after tax money.

Anyway, there's a 1099 and must be dealt with. 1. do nothing, report
nothing anywhere; wait for CP2000 letter maybe; maybe not!) 2. file
paper tax return with statement and copy of the 1099 explaining why it's
not on line 21. (line 20???? darn; I forget)
Cant think of an option 3 right now. AGree?

ChEAr$,
Harlan Lunsford, EA n LA

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A person purchased a motorcycle along with a insurance policy that, in case
of sickness, the policy would pay the loan payments on the bike. The
person became ill and could not work so the company made the payments. The
company then sent a 1099-Misc with the payments it made in Box 3. I thought
that if the person paid the premiums the proceeds were not taxable?? If
this is the case, how is this reported?

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Thank you,
George L. Anthony
Anthony's Income Tax Service
1602 Killian Avenue
Johnstown, PA 15909-1220
(814) 322-4740
geoanthony[at]atlanticbb.net

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >