Instructions for IRS Form 1099-A, 1099-C "Acquisition or Abandonment of Secured Property and Cancellation of Debt"

This document contains official instructions for IRS Form 1099-A, and IRS Form 1099-C. Both forms are released and collected by the Internal Revenue Service (IRS), a subdivision of the U.S. Department of the Treasury. An up-to-date fillable IRS Form 1099-A is available for download through this link. The latest available IRS Form 1099-C can be downloaded through this link.

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2020
Department of the Treasury
Internal Revenue Service
Instructions for Forms
1099-A and 1099-C
Acquisition or Abandonment of Secured Property and Cancellation of Debt
Section references are to the Internal Revenue Code
However, if you file both Forms 1099-A and 1099-C, do
unless otherwise noted.
not complete boxes 4, 5, and 7 on Form 1099-C. See the
Specific Instructions for Form
1099-C, later.
Future Developments
Property
For the latest information about developments related to
Forms 1099-A and 1099-C and their instructions, such as
“Property” means any real property (such as a personal
legislation enacted after they were published, go to
residence), any intangible property, and tangible personal
IRS.gov/Form1099A
and IRS.gov/Form1099C.
property except the following.
Reminders
No reporting is required for tangible personal property
(such as a car) held only for personal use. However, you
In addition to these specific instructions, you should also
must file Form 1099-A if the property is totally or partly
use the 2020 General Instructions for Certain Information
held for use in a trade or business or for investment.
Returns. Those general instructions include information
No reporting is required if the property securing the loan
about the following topics.
is located outside the United States and the borrower has
Who must file.
furnished the lender a statement, under penalties of
When and where to file.
perjury, that the borrower is an exempt foreign person
Electronic reporting.
(unless the lender knows that the statement is false).
Corrected and void returns.
Statements to recipients.
Who Must File
Taxpayer identification numbers (TINs).
In addition to the general rule specified above, the
Backup withholding.
following rules apply.
Penalties.
Other general topics.
Multiple owners of a single loan. If there are multiple
owners of undivided interests in a single loan, such as in
You can get the general instructions from General
pools, fixed investment trusts, or other similar
Instructions for Certain Information Returns at
IRS.gov/
arrangements, the trustee, record owner, or person acting
1099GeneralInstructions
or go to
IRS.gov/Form1099A
or
in a similar capacity must file Form 1099-A on behalf of all
IRS.gov/Form1099C.
the owners of beneficial interests or participations. In this
Online fillable Copies B and C. To ease statement
case, only one form for each borrower must be filed on
furnishing requirements, Copies B and C have been made
behalf of all owners with respect to the loan. Similarly, for
fillable online in a PDF format available at
IRS.gov/
bond issues, only the trustee or similar person is required
Form1099A
and IRS.gov/Form1099C. You can complete
to report.
these copies online for furnishing statements to recipients
Governmental unit. A governmental unit, or any of its
and for retaining in your own files.
subsidiary agencies, that lends money secured by
property must file Form 1099-A.
Specific Instructions for Form 1099-A
Subsequent holder. A subsequent holder of a loan is
File Form 1099-A, Acquisition or Abandonment of
treated as a lender and is required to report events
Secured Property, for each borrower if you lend money in
occurring after the loan is transferred to the new holder.
connection with your trade or business and, in full or
partial satisfaction of the debt, you acquire an interest in
Multiple lenders. If more than one person lends money
property that is security for the debt, or you have reason to
secured by property and one lender forecloses or
know that the property has been abandoned. You need
otherwise acquires an interest in the property and the sale
not be in the business of lending money to be subject to
or other acquisition terminates, reduces, or otherwise
this reporting requirement.
impairs the other lenders' security interests in the
property, the other lenders must file Form 1099-A for each
Coordination With Form 1099-C
of their loans.
If, in the same calendar year, you cancel a debt of $600 or
For example, if a first trust holder forecloses on a
more in connection with a foreclosure or abandonment of
building, and the second trust holder knows or has reason
secured property, it is not necessary to file both Form
to know of such foreclosure, the second trust holder must
1099-A and Form 1099-C, Cancellation of Debt, for the
file Form 1099-A for the second trust even though no part
same debtor. You may file Form 1099-C only. You will
of the second trust was satisfied by the proceeds of the
meet your Form 1099-A filing requirement for the debtor
foreclosure sale.
by completing boxes 4, 5, and 7 on Form 1099-C.
Aug 27, 2019
Cat. No. 27991U
2020
Department of the Treasury
Internal Revenue Service
Instructions for Forms
1099-A and 1099-C
Acquisition or Abandonment of Secured Property and Cancellation of Debt
Section references are to the Internal Revenue Code
However, if you file both Forms 1099-A and 1099-C, do
unless otherwise noted.
not complete boxes 4, 5, and 7 on Form 1099-C. See the
Specific Instructions for Form
1099-C, later.
Future Developments
Property
For the latest information about developments related to
Forms 1099-A and 1099-C and their instructions, such as
“Property” means any real property (such as a personal
legislation enacted after they were published, go to
residence), any intangible property, and tangible personal
IRS.gov/Form1099A
and IRS.gov/Form1099C.
property except the following.
Reminders
No reporting is required for tangible personal property
(such as a car) held only for personal use. However, you
In addition to these specific instructions, you should also
must file Form 1099-A if the property is totally or partly
use the 2020 General Instructions for Certain Information
held for use in a trade or business or for investment.
Returns. Those general instructions include information
No reporting is required if the property securing the loan
about the following topics.
is located outside the United States and the borrower has
Who must file.
furnished the lender a statement, under penalties of
When and where to file.
perjury, that the borrower is an exempt foreign person
Electronic reporting.
(unless the lender knows that the statement is false).
Corrected and void returns.
Statements to recipients.
Who Must File
Taxpayer identification numbers (TINs).
In addition to the general rule specified above, the
Backup withholding.
following rules apply.
Penalties.
Other general topics.
Multiple owners of a single loan. If there are multiple
owners of undivided interests in a single loan, such as in
You can get the general instructions from General
pools, fixed investment trusts, or other similar
Instructions for Certain Information Returns at
IRS.gov/
arrangements, the trustee, record owner, or person acting
1099GeneralInstructions
or go to
IRS.gov/Form1099A
or
in a similar capacity must file Form 1099-A on behalf of all
IRS.gov/Form1099C.
the owners of beneficial interests or participations. In this
Online fillable Copies B and C. To ease statement
case, only one form for each borrower must be filed on
furnishing requirements, Copies B and C have been made
behalf of all owners with respect to the loan. Similarly, for
fillable online in a PDF format available at
IRS.gov/
bond issues, only the trustee or similar person is required
Form1099A
and IRS.gov/Form1099C. You can complete
to report.
these copies online for furnishing statements to recipients
Governmental unit. A governmental unit, or any of its
and for retaining in your own files.
subsidiary agencies, that lends money secured by
property must file Form 1099-A.
Specific Instructions for Form 1099-A
Subsequent holder. A subsequent holder of a loan is
File Form 1099-A, Acquisition or Abandonment of
treated as a lender and is required to report events
Secured Property, for each borrower if you lend money in
occurring after the loan is transferred to the new holder.
connection with your trade or business and, in full or
partial satisfaction of the debt, you acquire an interest in
Multiple lenders. If more than one person lends money
property that is security for the debt, or you have reason to
secured by property and one lender forecloses or
know that the property has been abandoned. You need
otherwise acquires an interest in the property and the sale
not be in the business of lending money to be subject to
or other acquisition terminates, reduces, or otherwise
this reporting requirement.
impairs the other lenders' security interests in the
property, the other lenders must file Form 1099-A for each
Coordination With Form 1099-C
of their loans.
If, in the same calendar year, you cancel a debt of $600 or
For example, if a first trust holder forecloses on a
more in connection with a foreclosure or abandonment of
building, and the second trust holder knows or has reason
secured property, it is not necessary to file both Form
to know of such foreclosure, the second trust holder must
1099-A and Form 1099-C, Cancellation of Debt, for the
file Form 1099-A for the second trust even though no part
same debtor. You may file Form 1099-C only. You will
of the second trust was satisfied by the proceeds of the
meet your Form 1099-A filing requirement for the debtor
foreclosure sale.
by completing boxes 4, 5, and 7 on Form 1099-C.
Aug 27, 2019
Cat. No. 27991U
When To File
execution sale, use the later of the date of sale or the date
the borrower's right of redemption, if any, expires.
File Form 1099-A in the year following the calendar year in
which you acquire an interest in the property or first know
For an abandonment, enter the date you knew or had
or have reason to know that it has been abandoned.
reason to know that the property was abandoned unless
you expect to commence a foreclosure, execution, or
Abandonment
similar action within 3 months, as explained earlier. If a
An abandonment occurs when the objective facts and
third party purchases the property at a foreclosure,
circumstances indicate that the borrower intended to and
execution, or similar sale, the property is treated as
has permanently discarded the property from use. You
abandoned, and you have reason to know of its
have “reason to know” of an abandonment based on all
abandonment on the date of sale.
the facts and circumstances concerning the status of the
Box 2. Balance of Principal Outstanding
property. You will be deemed to know all the information
that would have been discovered through a reasonable
Enter the balance of the debt outstanding at the time the
inquiry when, in the ordinary course of business, you
interest in the property was acquired or on the date you
become aware or should become aware of circumstances
first knew or had reason to know that the property was
indicating that the property has been abandoned. If you
abandoned. Include only unpaid principal on the original
expect to commence a foreclosure, execution, or similar
debt. Do not include accrued interest or foreclosure costs.
sale within 3 months of the date you had reason to know
Box 3. Reserved
that the property was abandoned, reporting is required as
of the date you acquire an interest in the property or a
Box 4. Fair Market Value (FMV) of Property
third party purchases the property at such sale. If you
expect to but do not commence such action within 3
For a foreclosure, execution, or similar sale, enter the
months, the reporting requirement arises at the end of the
FMV of the property. See Temporary Regulations section
3-month period.
1.6050J-1T, Q/A-32. Generally, the gross foreclosure bid
price is considered to be the FMV. If an abandonment or
Statements to Borrowers
voluntary conveyance to the lender in lieu of foreclosure
If you are required to file Form 1099-A, you must provide a
occurred and you placed an “X” in the checkbox in box 5,
statement to the borrower. Furnish a copy of Form 1099-A
enter the appraised value of the property. Otherwise,
or an acceptable substitute statement to each borrower.
make no entry in this box.
For more information about the requirement to furnish a
Box 5. Was Borrower Personally Liable for
statement to the borrower, see part M in the 2020 General
Repayment of the Debt
Instructions for Certain Information Returns.
If the borrower was personally liable for repayment of the
Truncating borrower's TIN on statements. Pursuant to
debt at the time the debt was created or, if modified, at the
Regulations section 301.6109-4, all filers of Form 1099-A
time of the last modification, enter an “X” in the checkbox.
may truncate a borrower's TIN (social security number
(SSN), individual taxpayer identification number (ITIN),
Box 6. Description of Property
adoption taxpayer identification number (ATIN), or
Enter a general description of the property. For real
employer identification number (EIN)) on payee
property, generally you must enter the address of the
statements. Truncation is not allowed on any documents
property, or, if the address does not sufficiently identify
the filer files with the IRS. A lender's TIN may not be
the property, enter the section, lot, and block.
truncated on any form. See part J in the 2020 General
Instructions for Certain Information Returns.
For personal property, enter the applicable type, make,
and model. For example, describe a car as “Car—2015
Account Number
Honda Accord.” Use a category such as “Office
The account number is required if you have multiple
Equipment” to describe more than one piece of personal
accounts for a borrower for whom you are filing more than
property, such as six desks and seven computers. Enter
one Form 1099-A. Additionally, the IRS encourages you
“CCC” for crops forfeited on Commodity Credit
to designate an account number for all Forms 1099-A that
Corporation loans.
you file. See part L in the 2020 General Instructions for
Certain Information Returns.
Specific Instructions for Form 1099-C
Box 1. Date of Lender's Acquisition or
The creditor's phone number must be provided in
Knowledge of Abandonment
the creditor's information box. It should be a
!
For an acquisition, enter the date you acquired the
central number for all canceled debts at which a
CAUTION
secured property. An interest in the property generally is
person may be reached who will ensure the debtor is
acquired on the earlier of the date title is transferred to the
connected with the correct department.
lender or the date possession and the burdens and
benefits of ownership are transferred to the lender. If an
Do not file Form 1099-C when fraudulent debt is
objection period is provided by law, use the date the
canceled due to identity theft. Form 1099-C is to
!
objection period expires. If you purchase the property at a
be used only for cancellations of debts for which
CAUTION
sale held to satisfy the debt, such as at a foreclosure or
the debtor actually incurred the underlying debt.
-2-
Instructions for Forms 1099-A and 1099-C (2020)
File Form 1099-C, Cancellation of Debt, for each
d. An instrumentality in the judicial or legislative
debtor for whom you canceled a debt owed to you of $600
branch of the government.
or more if:
6. Any organization whose significant trade or
1. You are an entity described under
Who Must
File,
business is the lending of money, such as a finance
later, and
company or credit card company (whether or not affiliated
with a financial institution). The lending of money is a
2. An identifiable event has occurred. It does not
significant trade or business if money is lent on a regular
matter whether the actual cancellation is on or before the
and continuing basis. Regulations section 1.6050P-2(b)
date of the identifiable event. See
When Is a Debt
lists three safe harbors under which reporting may not be
Canceled, later.
required for the current year. See Safe harbor rules next.
Form 1099-C must be filed regardless of whether
the debtor is required to report the debt as
Safe harbor rules. The three safe harbor rules in which
!
income.
an entity will not be considered to have a significant trade
CAUTION
or business of lending money are the following.
The debtor may be an individual, corporation,
1. No prior year reporting required. An organization
partnership, trust, estate, association, or company.
will not have a significant trade or business of lending
Do not combine multiple cancellations of a debt to
money for the current year if the organization was not
determine whether you meet the $600 reporting
required to report in the prior year and if its gross income
requirement unless the separate cancellations are under a
from lending money in the most recent test year (see (3)
plan to evade the Form 1099-C requirements.
below) is less than both 15% of the organization's gross
income and $5 million.
Coordination With Form 1099-A
2. Prior year reporting requirement. An organization
If, in the same calendar year, you cancel a debt of $600 or
that had a prior year reporting requirement will not have a
more in connection with a foreclosure or abandonment of
significant trade or business of lending money for the
secured property, it is not necessary to file both Form
current year if, for each of the 3 most recent test years, its
1099-A, Acquisition or Abandonment of Secured
gross income from lending money is less than both 10%
Property, and Form 1099-C for the same debtor. You may
of the organization's gross income and $3 million.
file Form 1099-C only. You will meet your Form 1099-A
3. No test year. Newly formed organizations are
filing requirement for the debtor by completing boxes 4, 5,
considered not to have a significant trade or business of
and 7 on Form 1099-C. However, you may file both Forms
lending money even if the organization lends money on a
1099-A and 1099-C; if you do file both forms, do not
regular and continuing basis. However, this safe harbor
complete boxes 4, 5, and 7 on Form 1099-C. See the
does not apply to an entity formed or availed of for the
Specific Instructions for Form
1099-A, earlier, and
Box 4.
principal purpose of holding loans acquired or originated
Debt
Description,
Box 5. Check Here if the Debtor Was
by another entity. In this instance, the transferee entity
Personally Liable for Repayment of the
Debt, and
Box 7.
(including real estate mortgage investment conduits
Fair Market Value (FMV) of
Property, later.
(REMICs) and pass-through securitized indebtedness
Who Must File
arrangements) may be required to report cancellation of
indebtedness on Form 1099-C. See Regulations section
File Form 1099-C if you are any of the following.
1.6050P-1(e)(5).
1. A financial institution described in section 581 or
591(a) (such as a domestic bank, trust company, building
Test year defined. A test year is a tax year of the
and loan association, or savings and loan association).
organization that ends before July 1 of the previous
2. A credit union.
calendar year.
3. Any of the following, its successor, or subunit of one
For example, X, a calendar year taxpayer who has a
of the following.
significant trade or business of lending money, is formed
in year 1. X will not have a test year in year 1 or year 2.
a. Federal Deposit Insurance Corporation.
However, for year 3, X's test year will be year 1. In year 3,
b. National Credit Union Administration.
year 1 is the only year that ended before July 1 of the
c. Any other federal executive agency, including
previous calendar year (in this example, year 2).
government corporations.
Penalties. There are penalties for failure to file correct
d. Any military department.
information returns by the due date and for failure to
e. U.S. Postal Service.
furnish correct payee statements. See part O in the 2020
General Instructions for Certain Information Returns for
f. Postal Rate Commission.
details.
4. A corporation that is a subsidiary of a financial
Exceptions. Until further guidance is issued, no
institution or credit union, but only if, because of your
penalty will apply for failure to file Form 1099-C, or provide
affiliation, you are subject to supervision and examination
statements to debtors, for amounts:
by a federal or state regulatory agency.
Discharged in nonlending transactions, or
5. A federal government agency including:
Forgiven under the terms of a debt obligation.
a. A department,
Multiple creditors. If a debt is owned (or treated as
b. An agency,
owned for federal income tax purposes) by more than one
c. A court or court administrative office, or
-3-
Instructions for Forms 1099-A and 1099-C (2020)
creditor, each creditor that is described under
Who Must
3. A cancellation or extinguishment when the statute
File, earlier, must issue a Form 1099-C if that creditor's
of limitations for collecting the debt expires, or when the
part of the canceled debt is $600 or more. A creditor will
statutory period for filing a claim or beginning a deficiency
be deemed to have met its filing requirements if a lead
judgment proceeding expires. Expiration of the statute of
bank, fund administrator, or other designee of the creditor
limitations is an identifiable event only when a debtor's
complies on its behalf. The designee may file a single
affirmative statute of limitations defense is upheld in a final
Form 1099-C reporting the aggregate canceled debt or
judgment or decision of a court and the appeal period has
may file Form 1099-C for that creditor's part of the
expired. Enter “C” in box 6 to report this identifiable event.
canceled debt. Use any reasonable method to determine
4. A cancellation or extinguishment when the creditor
the amount of each creditor's part of the canceled debt.
elects foreclosure remedies that by law extinguish or bar
Debt owned by a partnership is treated as owned by
the creditor's right to collect the debt. This event applies to
the partners and must follow the rules for multiple
a mortgage lender or holder who is barred by local law
creditors.
from pursuing debt collection after a “power of sale” in the
mortgage or deed of trust is exercised. Enter “D” in box 6
Pass-throughs and REMICs. Until further guidance is
to report this identifiable event.
issued, no penalty will apply for failure to file Form
5. A cancellation or extinguishment making the debt
1099-C, or provide statements to debtors, for a canceled
unenforceable under a probate or similar proceeding.
debt held in a pass-through securitized debt arrangement
Enter “E” in box 6 to report this identifiable event.
or held by a REMIC. However, see item 3 under
Safe
harbor
rules, earlier.
6. A discharge of indebtedness under an agreement
between the creditor and the debtor to cancel the debt at
A pass-through securitized debt arrangement is any
less than full consideration (for example, short sales).
arrangement in which one or more debts are pooled and
Enter “F” in box 6 to report this identifiable event.
held for 20 or more persons whose interests in the debt
are undivided co-ownership interests that are freely
7. A discharge of indebtedness because of a decision
transferable. Co-ownership interests that are actively
or a defined policy of the creditor to discontinue collection
traded personal property (as defined in Regulations
activity and cancel the debt. A creditor's defined policy
section 1.1092(d)-1) are presumed to meet these
can be in writing or an established business practice of
requirements.
the creditor. A creditor's established practice to stop
collection activity and abandon a debt when a particular
Debt Defined
nonpayment period expires is a defined policy. Enter “G”
A debt is any amount owed to you, including stated
in box 6 to report this identifiable event.
principal, stated interest, fees, penalties, administrative
8. Other actual discharge before identifiable event.
costs, and fines. The amount of debt canceled may be all
Enter “H” in box 6 if there is an other actual discharge
or only part of the total amount owed. However, for a
before one of the identifiable events listed above.
lending transaction, you are required to report only the
stated principal. See Exceptions, later.
Exceptions
You are not required to report on Form 1099-C the
When To File
following.
File Form 1099-C in the year following the calendar year
1. Certain bankruptcies. You are not required to report
in which the identifiable event occurs. See Exceptions,
a debt discharged in bankruptcy unless you know from
later. If you cancel a debt before an identifiable event
information included in your books and records that the
occurs, you may choose to file Form 1099-C for the year
debt was incurred for business or investment purposes. If
of cancellation. No further reporting is required even if a
you are required to report a business or investment debt
later identifiable event occurs with respect to an amount
discharged in bankruptcy, report it for the later of:
previously reported. Also, you are not required to file an
a. The year in which the amount of discharged debt
additional or corrected Form 1099-C if you receive
first can be determined, or
payment on a prior year debt.
b. The year in which the debt is discharged in
When Is a Debt Canceled
bankruptcy.
A debt is deemed canceled on the date an identifiable
A debt is incurred for business if it is incurred in
event occurs or, if earlier, the date of the actual discharge
connection with the conduct of any trade or business
if you choose to file Form 1099-C for the year of
other than the trade or business of performing services as
cancellation. An identifiable event is one of the following.
an employee. A debt is incurred for investment if it is
1. A discharge in bankruptcy under title 11 of the U.S.
incurred to purchase property held for investment (as
Code. For information on certain discharges in bankruptcy
defined in section 163(d)(5)).
not required to be reported, see Exceptions, later. Enter
2. Interest. You are not required to report interest.
“A” in box 6 to report this identifiable event.
However, if you choose to report interest as part of the
2. A cancellation or extinguishment making the debt
canceled debt in box 2, you must show the interest
unenforceable in a receivership, foreclosure, or similar
separately in box 3.
federal nonbankruptcy or state court proceeding. Enter
3. Nonprincipal amounts. Nonprincipal amounts
“B” in box 6 to report this identifiable event.
include penalties, fines, fees, and administrative costs.
For a lending transaction, you are not required to report
-4-
Instructions for Forms 1099-A and 1099-C (2020)
any amount other than stated principal. A lending
discharge of the debt is due to the student's death or
transaction occurs when a lender loans money to, or
permanent and total disability.
makes advances on behalf of, a borrower (including
Multiple Debtors
revolving credit and lines of credit). For a nonlending
transaction, nonprincipal amounts are included in the
For debts of $10,000 or more incurred after 1994 that
debt. However, until further guidance is issued, no
involve debtors who are jointly and severally liable for the
penalties will be imposed for failure to report these
debt, you must report the entire amount of the canceled
amounts in nonlending transactions.
debt on each debtor's Form 1099-C. Multiple debtors are
jointly and severally liable for a debt if there is no clear and
4. Foreign debtors. Until further guidance is issued, no
convincing evidence to the contrary. If it can be shown
penalty will apply if a financial institution does not file Form
that joint and several liability does not exist, a Form
1099-C for a debt canceled by its foreign branch or
1099-C is required for each debtor for whom you canceled
foreign office for a foreign debtor, provided all the
a debt of $600 or more.
following apply.
a. The financial institution is engaged in the active
For debts incurred before 1995 and for debts of less
conduct of a banking or similar business outside the
than $10,000 incurred after 1994, you must file Form
United States.
1099-C only for the primary (or first-named) debtor.
b. The branch or office is a permanent place of
If you know or have reason to know that the multiple
business that is regularly maintained, occupied, and used
debtors were husband and wife who were living at the
to carry on a banking or similar financial business.
same address when the debt was incurred, and you have
c. The business is conducted by at least one
no information that these circumstances have changed,
employee of the branch or office who is regularly in
you may file only one Form 1099-C.
attendance at the place of business during normal
Recordkeeping
working hours.
If you are required to file Form 1099-C, you must retain a
d. The indebtedness is extended outside the United
copy of that form or be able to reconstruct the data for at
States by the branch or office in connection with that trade
least 4 years from the due date of the return.
or business.
e. The financial institution does not know or have
Requesting TINs
reason to know that the debtor is a U.S. person.
You must make a reasonable effort to obtain the correct
5. Related parties. Generally, a creditor is not required
name and TIN of the person whose debt was canceled.
to file Form 1099-C for the deemed cancellation of a debt
You may obtain the TIN when the debt is incurred. If you
that occurs when the creditor acquires the debt of a
do not obtain the TIN before the debt is canceled, you
related debtor, becomes related to the debtor, or transfers
must request the debtor's TIN. Your request must clearly
the debt to another creditor related to the debtor.
notify the debtor that the IRS requires the debtor to furnish
However, if the transfer to a related party by the creditor
its TIN and that failure to furnish such TIN subjects the
was for the purpose of avoiding the Form 1099-C
debtor to a $50 penalty imposed by the IRS. You may use
requirements, Form 1099-C is required. See section
Form W-9, Request for Taxpayer Identification Number
108(e)(4).
and Certification, to request the TIN. However, a debtor is
6. Release of a debtor. You are not required to file
not required to certify his or her TIN under penalties of
Form 1099-C if you release one of the debtors on a debt
perjury.
as long as the remaining debtors are liable for the full
Statements to Debtors
unpaid amount.
If you are required to file Form 1099-C, you must provide a
7. Guarantor or surety. You are not required to file
copy of Form 1099-C or an acceptable substitute
Form 1099-C for a guarantor or surety. A guarantor is not
statement to each debtor. In the 2020 General Instructions
a debtor for purposes of filing Form 1099-C even if
for Certain Information Returns, see:
demand for payment is made to the guarantor.
Part M for more information about the requirement to
8. Seller financing. Organizations whose principal
furnish a statement to the debtor, and
trade or business is the sale of nonfinancial goods or
Part J for specific procedures to complete Form 1099-C
nonfinancial services, and who extend credit to customers
for debtors in bankruptcy.
in connection with the purchase of those nonfinancial
goods and nonfinancial services, are not considered to
Truncating debtor's TIN on payee statements.
have a significant trade or business of lending money,
Pursuant to Regulations section 301.6109-4, all filers of
with respect to the credit extended in connection with the
Form 1099-C may truncate a debtor's TIN (social security
purchase of those goods or services, for reporting
number (SSN), individual taxpayer identification number
discharge of indebtedness on Form 1099-C. See
(ITIN), adoption taxpayer identification number (ATIN), or
Regulations section 1.6050P-2(c). But the reporting
employer identification number (EIN)) on payee
applies if a separate financing subsidiary of the retailer
statements. Truncation is not allowed on any documents
extends the credit to the retailer's customers.
the filer files with the IRS. A creditor's TIN may not be
truncated on any form. See part J in the 2020 General
9. Student loan indebtedness. For discharges
Instructions for Certain Information Returns.
occurring after December 31, 2017, you are not required
to file Form 1099-C for student loan indebtedness if the
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Instructions for Forms 1099-A and 1099-C (2020)
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