TaxBandits Knowledge Base

What is Form 1099-C?

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 canceled 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 and the debtor's identifying information, such as their name, address, and social security number. The debtor must include the amount of canceled 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 with the IRS regardless of whether the debtor chooses to report the debt as taxable income. A copy of Form 1099-C  must be sent to the debtor.

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