If an employee is in debt to you and you release the employee from the obligation to repay the debt, the unpaid amount is a debt waiver fringe benefit. Show the amount of this kind of benefit at item D.
A debt owed by an employee that you write off as a genuine bad debt is not a debt waiver fringe benefit.
Start of example
Example 13: Taxable value of debt waiver fringe benefit
You waive a $500 debt (including principal and interest) that an employee owed you from a previous year.
You would write at item 23: