Live event participants can earn up to 1 CPE credit in the Taxes field of study.
Program description: As the coronavirus pandemic impacts the global economy, a key concern for businesses, beyond those of the health and welfare of their clients and team, is the need to understand the effect of economic conditions on debt instruments. A temporary forbearance on required debt payments can cause a modification of a debt instrument that can have significant tax implications.
Program level: Intermediate
Prerequisites: Current or past experience with taxation planning issues.
Advanced Preparation: None
Topics to be discussed include:
- Common options for debt restructuring
- Mechanisms for restructuring debt (out of court workout, bankruptcy, etc.)
- Debt restructuring: When does a debt modification rise to the level of a taxable exchange, resulting in a new modified debt instrument?
- Discharge of indebtedness income to a borrower and exceptions to current income recognition
- Original Issue Discount rules for the new modified debt instrument and the tax impact for debtors and creditors
- Gains/losses triggered to lenders as part of a taxable exchange of old debt instruments for new debt instruments
- Bad debt losses to creditors; character of gain/loss on the exchange of old debt for new debt
Instructional Delivery Method: Group Internet Based
Who Should Attend: Those interested in learning more about the current tax framework and impact on debt modifications and what current and future tax ramifications may exist between the debtor and the creditor.

CohnReznick LLP is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State board of accountancy have final authority on the acceptance of individual courses for CPE credits. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org