Form 1099-C

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Form 1099-C

A form that a lender files with the IRS if it cancels a debt in excess of $600. Lenders are required to file 1099-C whether the borrower is a natural person or legal person.
References in periodicals archive ?
1.6050P1 (b)(2)(i)(H) and (iv), which require applicable financial entities to issue Forms 1099-C reporting cancellation of debt (COD) income when a 36-month nonpayment testing period has expired.
All lenders required to furnish Forms 1099-C continue to be required to report upon the occurrence of any of the other seven identifiable events.
Given the fact that the application of the 36-month rule is among the most challenging, and subjective, of the criteria for triggering the filing of Forms 1099-C, this change comes as good news for affected filers.
These "applicable financial entities" were required, under regulations released in 1996, to issue Forms 1099-C, Cancellation of Debt, whenever certain identifiable events occurred.
In Notice 2001-8, the Service announced that it would again extend the suspension of penalties for failure to issue Forms 1099-C, Cancellation of Debt, for those organizations that became subject to the Sec.
Tax legislation in 1999 expanded this reporting requirement to any organization "a significant trade or business of which is the lending of money." As a result, finance companies, credit card companies and certain other businesses must issue Forms 1099-C, Cancellation of Debt, for debt discharges occurring after 1999.