I sent a demand letter via email to a client for a $500 balance they owed. They offered a token amount, by email, to settle. Their token was so small that I would rather send them a 1099-C.
My reasoning is that the 1099-C will make them uncomfortable enough to pay the debt, and if not, then at least I have put the IRS on alert that the person has received $500 in income in the form of "forgiven" debt.
However, the only data I have about the client is their name, email address, their social-media-self-reported employment history (e.g., LinkedIn, and profile pages at companies they've worked at), and email notices from PayPal about the money that had sent to me before they became a deadbeat. Their PayPal profile reveals only their name and email address.
I was told by another business that they have been successful in sending incomplete 1099-Cs to their deadbeat clients; i.e., that the IRS easily figures it out. However, the data they are missing is usually a social security number.
I have no phone number, street address, or social security number. Only the person's name, email, and a transaction history from PayPal that shows the money and email-alert trail until they stopped paying.
Given only the person's name and email on the 1099-C, will the IRS be able to figure out who they are?