6th Cir Holds Mortgagee Did Not Breach Settlement w/ Borrower By Disclosing Cancelled Indebtedness to IRS

The U.S. Court of Appeals for the Sixth Circuit  reversed  a  summary judgment in favor of a mortgagor where the plain language of a settlement agreement ( in a breach of contract claim) did not prohibit a lender from reporting its transaction with the Internal Revenue Service (IRS).


The Sixth Circuit concluded the Settlement Order said nothing about how each party would treat the transaction for tax purposes nor about how each party would report the transaction to  the IRS.  The Lender  was allowed to issue the 1099.


Carol A. Lawson, Esq., 28870 U.S. Hwy19 #300, Hodusa Towers, Clearwater, FL 33761, Phone: (727) 410-2705 email: calh@gate.net