What is Form 1099-C?
160 views | Last modified 10/16/2023 8:41:33 AM EST | Added by TaxBandits Team

Form 1099-C is a tax form that is used by lenders or creditors (including domestic banks, trust companies, and credit unions) to report to the IRS about the cancelled or forgiven debts of $600 or more owed to the debtors such as an individual, corporation, partnership, trust, estate, association or company.

The form reports the amount of debt that was canceled or forgiven, as well as the debtor's identifying information, such as their name, address, and social security number. The debtor must include the amount of cancelled or forgiven debt as income on their tax return unless they qualify for an exclusion or exception.

Note: A 1099-C Form must be filed to the IRS regardless of whether the debtor chooses to report the debt as taxable income and send a copy of Form 1099-C  to the debtor.

To learn more information about Form 1099-C, click here.