1099 for Embezzlement?
We have a business client that had a sizable amount embezzled during 2012. The embezzlement was discovered in 2013, so it is deductible in 2013. The assistant district attorney (and client) want to send a 1099 to the perpetrator, but I have read that a 1099 might not apply. The perpetrator will not be paying any of the stolen funds back.
Has anyone dealt with this situation? I appreciate any feedback.