Discussion:Reporting guarantor's fee

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Discussion Forum Index --> Basic Tax Questions --> Reporting guarantor's fee
Discussion Forum Index --> Tax Questions --> Reporting guarantor's fee

JAD (talk\|edits) said:	21 October 2009
Client pays a guarantor's fee to an officer/employee. Is the fee included in wages, or is it reported on Form 1099? I cannot find any guidance. Thank you for any help.

MWPXYZ (talk|edits) said:

21 October 2009

I have tried to research this for years and found little. It was in a CPE course that it was mentioned that a fee to guarantee debt would not be subject to SE tax. And if not charged in the capacity as an employee, not subject to treatment as wages. BUT, the only thing i have found is a Court of Claims case, just before Christmas 1998, the the court agreed with the IRS in treating the fee as a dividend. (Seminole Thriftway)

Kevinh5 (talk\|edits) said:	21 October 2009
wow, you found something just before Christmas 1998 and remembered it. I know people who can't find where they left their car keys the night before!

MWPXYZ (talk\|edits) said:	21 October 2009
I can find stuff on my computer; I cant find car keys.

Kevinh5 (talk\|edits) said:	21 October 2009
maybe put your keys on top of your computer?

MWPXYZ (talk\|edits) said:	21 October 2009
I used to put them on that coffee cup holder that pops out of the top of the tower, but the computer occassionally ate them.

Kevinh5 (talk\|edits) said:	21 October 2009
My assistant told me that that was not a coffee cup holder, but a CD tray. So I found she was right - you roll up the certificate of deposit, place it in the hole, and then push the tray in and it holds the CDs snug up against the computer for safekeeping. My only worry is whether FDIC insurance covers computer viruses.