Form 1099-C
All states | 22 types
Ever had a debt waved off or canceled? That's when you'll encounter the 1099 С form. This form is important because it records the forgiven debt and helps you figure out how it might affect your taxes.
So, who is responsible for the 1099-C form?
Banks;
Credit unions;
Federal agencies.
When Is Form 1099-C Due?
The 1099 С form must be sent to the IRS and the borrower by January 31 of the year after the debt is canceled.
Key Elements of 1099 C Cancellation of Debt
The form 1099-C sections have details of the debt cancellation:
Creditor's Information
- Creditor's name;
- Contact address;
- Federal identification number.
Debtor's Information
- Borrower's name;
- Address;
- Taxpayer identification number.
Debt Details
- Date the debt was canceled;
- Amount forgiven;
- Market value.
Form 1099 C: Filling Out the Document
1. Acquire the Form. The 1099-C form PDF is usually provided by the creditor. Alternatively, you can download the 1099-c cancellation of debt from the Loio website or the IRS portal.
2. Fill Out the 1099 form C.
In the Creditor's section, fill out:
- Name of the creditor;
- Address;
- Contact number.
In the Debtor’s section of the cancellation of debt 1099-C, provide:
- Debtor's name;
- Address;
- Taxpayer identification number.
You can always find the 1099-C form examples to see how other people fill out this document.
Under the Debt Description & Details section, specify the date of the identifiable event, the precise amount of discharged debt and the fair market value of any property.
What Other Documents Must Accompany the IRS 1099 C Tax Form?
Copy A. Sent to the IRS.
Copy B. Sent to the borrower.
Copy C. Retained by the lender for their records.
Transmittal Form 1096. Submitted to the IRS if filing on paper.
There's no denying that the 1099 C form meaning can seem like a complex undertaking initially. But knowing what it's used for and filling it out correctly helps you report things accurately and avoid any future problems with the IRS.