I have a client that made a loan from a self-directed IRA (through the trustee) to his friend. The loan has never been paid and after probably 6-7 years they desire to resolve the issue, but without repaying the amount. How can that be done? If “cancelled or forgiven” does the trustee need to issue a 1099-C-Cancellation of Debt for the amount to the borrower? Would it be just the principal or also accrued interest? Are there any qualified experts for my client to discuss this issue?