Thats right hit everyone with a 1099 from the IRS on that.
Along similar lines... Suppose a student gets $50,000 of his student debt forgiven and the IRS considers it income and taxes him at 20% rate. Suddenly he has a $10K tax liability to the IRS plus whatever the state charges for that income. Easily a $13,000 debt due on April 15th!
Thanks, Joe!
I’m thinking I saw Schoomer and Liawatha on tv stating that they were also working on getting the tax forgiven on student loan giveaways.