1099-C Form (Cancellation of Debt)

Form 1099-C Filing

If, in the same calendar year, you cancel a debt of $600 or more in connection with a foreclosure or abandonment of secured property, it is not necessary to file both Form 1099-A and Form 1099-C, Cancellation of Debt, for the same debtor. You may file Form 1099-C only. You will meet your Form 1099-A filing requirement for the debtor by completing boxes 4, 5, and 7 on Form 1099-C. However, if you file both Forms 1099-A and 1099-C, do not complete boxes 4, 5, and 7 on Form 1099-C.

Specific instructions about 1099-C filings

  • The creditor's phone number must be provided in the creditor's information box. It should be a central number for all canceled debts at which a person may be reached who will ensure the debtor is connected with the correct department
  • Do not file Form 1099-C when fraudulent debt is canceled due to identity theft. Form 1099-C is to be used only for cancellations of debts for which the debtor actually incurred the underlying debt
  • File Form 1099-C, Cancellation of Debt, for each debtor for whom you canceled a debt owed to you of $600 or more if:
    • You are an entity described under Who Must File below, and
    • An identifiable event has occurred. It does not matter whether the actual cancellation is on or before the date of the identifiable event. See When Is a Debt Canceled, later.
  • Form 1099-C must be filed regardless of whether the debtor is required to report the debt as income.
  • The debtor may be an individual, corporation, partnership, trust, estate, association, or company. Do not combine multiple cancellations of a debt to determine whether you meet the $600 reporting requirement unless the separate cancellations are under a plan to evade the Form 1099-C requirements.

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