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Hard money lender's 1098 doesn't match his actual received interest - is this legal?

Mount Sinai, NY |

My company borrowed money on a one-year term loan from a hard money lender. He received $98,000 prepaid interest, as indicated on the closing statement. But he only declared half of that on the 1098 he sent us for the year - $49,000. Has he done something illegal here? (I believe the correct form is 1098, it may be 1099, I don't have it front of me.)

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Filed under: Small business loans
Attorney answers 1

Posted

Bring it to your CPA. May depend on whether he is on a cash basis or accrual basis.

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