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Official form guide
Form 1099C: Cancellation of Debt
IRS Form 1099-C is used for Cancellation of Debt and is provided by the Creditor to report debt forgiveness to the IRS. Copy A is for informational purposes, and if you have 10 or more returns, e-filing may be required.
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IRS Form 1099C - Cancellation of Debt
IRS Form 1099-C is used for Cancellation of Debt and is provided by the Creditor to report debt forgiveness to the IRS. Copy A is for informational purposes, and if you have 10 or more returns, e-filing may be required.
Risk Radar
Scan points- 1Do not print and file Copy A downloaded from this website if it cannot be scanned; a penalty may result.
- 2Filing Copy A downloaded from this website if it cannot be scanned by the IRS.
- 3Not listing the correct Creditor's TIN or Debtor's TIN on Form 1099-C.
- 4Omitting the amount of debt discharged in Box 2 when it is actually forgiven.
- 5Failing to check Box 5 if the debtor was personally liable for repayment at the time of creation/modification.
Plain English
This form officially tells the Internal Revenue Service that a creditor has forgiven some or all of a debt owed by a debtor. It documents when the forgiveness happened, how much debt was canceled, and provides details about the debt itself. This information helps determine if the cancellation counts as taxable income for the recipient.
Submission Date
- Filing date: 2025-03-20 22:10:28
- Preparation window: collect IDs, supporting records, and signatures in advance.
- Final review: verify names, dates, and required fields before submission.
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What this form is for
- Use this form when a federal government agency or applicable financial entity (creditor) discharges (cancels or forgives) debt owed, or an identifiable event occurs that is deemed to be a discharge of a debt of $600 or more.
- Do not use it if the canceled debt is less than $600 and no identifiable event has occurred, unless you are required to report all canceled debt on your Form 1040/1040-SR.
- Check Pub. 4681 instead when needing more details regarding exceptions and exclusions to reporting canceled debt.
Form selector
Use this form or another form?
Debt is from probate or similar proceeding
The cancellation resulted from a legal process like inheritance distribution.
✓ Verify Box 7 if property was involved.
Cancellation occurred by mutual agreement
Both the creditor and debtor agreed to the debt forgiveness terms.
✓ Ensure this box is checked on Copy B.
Debt collection decision or policy change
The creditor decided internally to discontinue collecting the debt, even without a formal agreement.
✓ This indicates an internal action by the Creditor.
Deadline or filing window
The form reports an identifiable event as soon as it occurs. If the debt is discharged later, the amount must be included in income in that year unless an exception applies to the debtor. There are no specific filing deadlines mentioned for submission, only when the triggering event occurred.
Checklist
What you need before filling it out
Amount of debt discharged
The dollar amount forgiven · Box 2 on Copy A/B
Date of identifiable event
The specific date the cancellation or event occurred · Box 1 on Copy A/B
Debt description
A clear explanation of what the debt was for (e.g., 'Credit Card Balance') · Box 4 on Copy A/B
Fair market value of property
The appraised or bid price if property was involved in cancellation · Box 7 on Copy A/B
Identifiable event code
The letter code (E, F, G, H) describing *why* the debt was canceled · Box 6 on Copy A/B
Before you submit
- 1Ensure all required fields on Copy A are filled out (Creditor TIN, Debtor TIN, etc.).
- 2Confirm the Date of identifiable event in Box 1 is accurate.
- 3Verify that the Amount of debt discharged in Box 2 matches the forgiven amount.
- 4Check the appropriate box under Box 5 if the debtor was personally liable for repayment.
- 5Select and record the correct Identifiable event code (Box 6).
- 6If property was involved, confirm the Fair market value is listed in Box 7.
- 7For filing with the IRS, ensure you are submitting a scannable Copy A.
How to file this form
- 1Complete all required fields on Copy A (the form for the Internal Revenue Service) using the information from the creditor and yourself.
- 2If applicable, check Box 5 to indicate if the debtor was personally liable for repayment of the debt.
- 3Fill out Box 7 with the Fair market value of property if a foreclosure or abandonment occurred in connection with the cancellation of the debt.
- 4Sign and date the form (signing location is implied by completion) before submitting Copy A to the IRS.
Known limitations
- 1A debtor may not have to include all of the canceled debt in income if exceptions or exclusions apply (e.g., bankruptcy and insolvency) [Form p.4].
- 2If a creditor has discharged a debt, the amount must be included in income on the 'Other income' line of Form 1040 or 1040-SR even if it is less than $600 [Form p.4].
- 3Copy A downloaded from this website cannot be printed and filed because it is not scannable, which may result in a penalty being imposed by the IRS [Form p.1].
Field map
Compact field-by-field guide
Payer Info
1 items
Identifying information of the business or person making the payment.
Recipient Info
1 items
Identifying information of the person or entity receiving the payment.
Amounts
1 items
The payment amount subject to reporting for the applicable box category.
Withholding
1 items
Backup withholding amount if applicable.
Signatures
1 items
Name and phone number of the person to contact about this return.
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Fillable formOpen in Editor->The current edition of IRS Form 1099-C is dated April 2025 (Rev. 4-2025). The form directs users to www.irs.gov/Form1099C for the latest information regarding developments.
What changed or needs a fresh check
- Edition date — confirm April 2025 is listed on the form.
- Form number — confirm Cat. No. 26280W is present on Copy A.
- Mailing address — verify the Creditor's full name, street address, city/town, state/province, country, and ZIP/postal code are complete.
- Signature — confirmation of signature location is not specified for filing copies, but ensure all required fields (especially Box 1 through 7) are completed.
Quick Facts
Downloads
After you file
- 1Keep copies of Form 1099-C for records, especially Copy B [Form p.3].
- 2If filing electronically, use a scannable version (like ordering official forms) to avoid penalties associated with non-scannable files [Form p.1].
- 3If the debtor does not agree with the amount reported in Box 2, contact the creditor [Form p.4].
- 4Review Pub. 4681 for specific reporting instructions regarding Boxes 3, 4, and 5 [Form p.4].
Sources
- SRCInstructions p.1 — Copy A is provided for informational purposes only, and if you have 10 or more information returns to file, e-file may be required [Form p.1].
- SRCInstructions p.2 — Form 1099-C (Rev. April 2025) has a Category Number of 26280W [Form p.2].
- SRCInstructions p.3 — Copy B is the version furnished to the IRS and includes OMB No. 1545-1424 [Form p.3].
- SRCInstructions p.4 — A debtor must include the discharged amount in income on Form 1040 or 1040-SR if a creditor discharges debt, even if less than $600 [Form p.4].
- SRCInstructions p.2 — Box 3 shows interest included in Box 2; Pub. 4681 directs how to treat this interest [Form p.4].
- SRCInstructions p.4 — Box 6 codes (e.g., A, B, C, D) are described in detail within Pub. 4681 [Form p.4].
Common confusion points
Which copy should I file with the IRS?
Copy A is provided for informational purposes only; use a scannable version of it or Copy B (which appears in black) [Form p.1].
What happens if I have 10 or more returns to file?
You may be required to file electronically (e-file); check IRS.gov/InfoReturn for options [Form p.1].
Do I always report the full canceled debt amount?
No, exceptions and exclusions exist, such as bankruptcy and insolvency; consult Pub. 4681 for details [Form p.4].
What does 'Identifiable event code' in Box 6 mean?
It shows the reason the creditor filed the form, with codes like A (Bankruptcy) or C (Statute of limitations) describing it further in Pub. 4681 [Form p.4].
When should I worry about a penalty?
A negligence penalty or other sanction may be imposed if taxable income results from the transaction and the IRS determines it was not reported [Form p.3].
What is the difference between Box 2 and Box 3?
Box 2 shows the debt amount discharged; Box 3 shows interest, which must be checked against Pub. 4681 to see if it needs inclusion in gross income [Form p.4].
Workflow map
Related forms and next steps
Before
Current
After
Often used with
⚠ If something goes wrong
- Pub. 4681 (Provides detailed instructions and code descriptions for Form 1099-C) [Form p.4].
Questions about IRS Form 1099C
What is IRS Form 1099C used for?
This form officially tells the Internal Revenue Service that a creditor has forgiven some or all of a debt owed by a debtor. It documents when the forgiveness happened, how much debt was canceled, and provides details about the debt itself. This information helps determine if the cancellation counts as taxable income for the recipient.
Who must file IRS Form 1099C?
The Creditor must file IRS Form 1099-C to report the debt cancellation to the Internal Revenue Service.
What information does IRS Form 1099C require?
The form collects details such as the creditor's and debtor's names, TINs, the date of the identifiable event (Box 1), the amount of debt discharged (Box 2), and a description of the debt in Box 4. If property was involved, its fair market value is shown in Box 7.
When is IRS Form 1099C due?
The form reports an identifiable event that has occurred; if an identifiable event occurs but the debt isn't actually discharged, the amount must be included in income in the year it is actually discharged unless an exception applies.
Where do I file IRS Form 1099C?
If filing on paper, one can order official IRS returns from IRS.gov/EmployerForms. If the filer has 10 or more information returns to file, they may be required to e-file via IRS.gov/InfoReturn.
How do I complete IRS Form 1099C?
The Creditor fills out the required information on Copy A (for filing with the IRS) or Copy B. The debtor must ensure their TIN is correctly listed, and they should check Box 5 to confirm personal liability status. For definitive reporting, one must complete all relevant boxes before submission.
What happens if IRS Form 1099C is filed incorrectly?
A negligence penalty or other sanction may be imposed if taxable income results from this transaction and the IRS determines that it has not been reported using Form 1099-C.
Which copy should I file with the IRS?
Copy A is provided for informational purposes only; use a scannable version of it or Copy B (which appears in black) [Form p.1].
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