What is the 1099-C form?
1099-C forms are used to report cancellation of debt by an individual, amounting to $600 or more.
Who should file a 1099-C form?
Domestic banks and other financial institutions are the ones required to file a 1099-C form.
When should a 1099-C form be filed?
1099-C forms must be sent to recipients via mail, on or before January 31, and e-filed with the IRS by March 31.
Where Should 1099-C forms be Filed?
1099-C forms must be filed to the IRS.
Why is it Important to File 1099-C Forms?
1099-C forms must be filed to report the cancellation of debts amounting to $600 or more.
The 1099-C form is intended for the reporting of cancelled debts amounting to $600 or more and made by individual, corporation, partnership, trust, estate, association or company. Cancellation of debt may be in full or in part of the total amount owed. Filing must be done whether the recipient prefers to report the debt as taxable income.
Types of Debt Covered by 1099-C Form
- Any amount owed to the organization
- Stated principal
- Stated interest
- Administrative costs
1099-C Forms Apply to the Following Businesses:
- Domestic banks
- Trust companies
- Building and loan organizations
- Savings and loan organizations
- Credit unions
- Resolution trust companies
- National credit union management
- Other financial institutions