After dithering publicly for months about its supposed "plan" to collect nearly $1.7 million owed to the Grand Traverse Academy by Steven Ingersoll's Smart Schools Management, Inc., the Traverse City charter school's 2014 fiscal audit revealed its Board decided to "write it off".
According to the IRS, if your debt is canceled, forgiven, or discharged you will receive a Form 1099-C, Cancellation of Debt, and must include the canceled amount in gross income unless you meet an exclusion or exception. If you receive a Form 1099-C but the creditor is continuing to try to collect the debt, the creditor may not have canceled the debt.
Miss Fortune wonders if Ingersoll received a formal cancellation of debt...and if he's paid the tax on that amount.
And if the Grand Traverse Academy has not "cancelled" Ingersoll's debt, what steps are being taken to recover the money?
Ingersoll’s personal criminal tax obligation for the three years at issue (2009-2011) is $2,699,673.48, per a recent IRS affidavit, although he is "jointly and severally liable" for restitution totaling $3,788,797.18, plus the costs of prosecution.
Should have filed that civil suit against Ingersoll before he was indicted.
Oh, wait...there's that pesky cover-up!