Instructions for Forms 

1099-A and 1099-C

(Rev. January 2022)

Acquisition or Abandonment of Secured Property and Cancellation of Debt

Department of the Treasury

Internal Revenue Service

Section references are to the Internal Revenue Code 

unless otherwise noted.

Future Developments

For the latest information about developments related to 

Forms 1099-A and 1099-C and their instructions, such as 

legislation enacted after they were published, go to 

IRS.gov/Form1099A and IRS.gov/Form1099C.

What’s New

Continuous-use form and instructions. Form 1099-A, 

Form 1099-C, and these instructions have been 

converted from an annual revision to continuous use. Both 

the form and instructions will be updated as needed. For 

the most recent versions, go to IRS.gov/Form1099A and 

IRS.gov/Form1099C.

Reminders

In addition to these specific instructions, you should also 

use the current General Instructions for Certain 

Information Returns. Those general instructions include 

information about the following topics.

• Who must file.

• When and where to file.

• Electronic reporting.

• Corrected and void returns.

• Statements to recipients.

• Taxpayer identification numbers (TINs).

• Backup withholding.

• Penalties.

• Other general topics.

You can get the general instructions from General 

Instructions for Certain Information Returns at IRS.gov/

1099GeneralInstructions or go to IRS.gov/Form1099A or 

IRS.gov/Form1099C.

Online fillable Copies B and C. To ease statement 

furnishing requirements, Copies B and C have been made 

fillable online in a PDF format available at IRS.gov/

Form1099A and IRS.gov/Form1099C. You can complete 

these copies online for furnishing statements to recipients 

and for retaining in your own files.

Guidance for creditors regarding discharged student 

loans under section 6050P. Rev. Proc. 2020-11 

establishes a safe harbor extending relief under Rev. 

Proc. 2015-57; Rev. Proc. 2017-24, 2017-7 I.R.B. 916; 

and Rev. Proc. 2018-39. See Rev. Proc. 2020-11, 

available at IRS.gov/irb/2020-06_IRB#REVPROC-2020-11, to determine whether a creditor or 

taxpayer qualifies for relief. See Student loan 

indebtedness under Exceptions, later.

Specific Instructions for Form 1099-A

File Form 1099-A, Acquisition or Abandonment of 

Secured Property, for each borrower if you lend money in 

connection with your trade or business and, in full or 

partial satisfaction of the debt, you acquire an interest in 

property that is security for the debt, or you have reason to 

know that the property has been abandoned. You need 

not be in the business of lending money to be subject to 

this reporting requirement.

Coordination With Form 1099-C

If, in the same calendar year, you cancel a debt of $600 or 

more in connection with a foreclosure or abandonment of 

secured property, it is not necessary to file both Form 

1099-A and Form 1099-C, Cancellation of Debt, for the 

same debtor. You may file Form 1099-C only. You will 

meet your Form 1099-A filing requirement for the debtor 

by completing boxes 4, 5, and 7 on Form 1099-C. 

However, if you file both Forms 1099-A and 1099-C, do 

not complete boxes 4, 5, and 7 on Form 1099-C. See the 

Specific Instructions for Form 1099-C, later.

Property

“Property” means any real property (such as a personal 

residence), any intangible property, and tangible personal 

property except the following.

• No reporting is required for tangible personal property 

(such as a car) held only for personal use. However, you 

must file Form 1099-A if the property is totally or partly 

held for use in a trade or business or for investment.

• No reporting is required if the property securing the loan 

is located outside the United States and the borrower has 

furnished the lender a statement, under penalties of 

perjury, that the borrower is an exempt foreign person 

(unless the lender knows that the statement is false).

Who Must File

In addition to the general rule specified above, the 

following rules apply.

Multiple owners of a single loan. If there are multiple 

owners of undivided interests in a single loan, such as in 

pools, fixed investment trusts, or other similar 

arrangements, the trustee, record owner, or person acting 

in a similar capacity must file Form 1099-A on behalf of all 

the owners of beneficial interests or participations. In this 

case, only one form for each borrower must be filed on 

behalf of all owners with respect to the loan. Similarly, for 

bond issues, only the trustee or similar person is required 

to report.

Nov 03, 2021 Cat. No. 27991U
Governmental unit. A governmental unit, or any of its 

subsidiary agencies, that lends money secured by 

property must file Form 1099-A.

Subsequent holder. A subsequent holder of a loan is 

treated as a lender and is required to report events 

occurring after the loan is transferred to the new holder.

Multiple lenders. If more than one person lends money 

secured by property and one lender forecloses or 

otherwise acquires an interest in the property and the sale 

or other acquisition terminates, reduces, or otherwise 

impairs the other lenders' security interests in the 

property, the other lenders must file Form 1099-A for each 

of their loans.

For example, if a first trust holder forecloses on a 

building, and the second trust holder knows or has reason 

to know of such foreclosure, the second trust holder must 

file Form 1099-A for the second trust even though no part 

of the second trust was satisfied by the proceeds of the 

foreclosure sale.

When To File

File Form 1099-A in the year following the calendar year in 

which you acquire an interest in the property or first know 

or have reason to know that it has been abandoned.

Abandonment

An abandonment occurs when the objective facts and 

circumstances indicate that the borrower intended to and 

has permanently discarded the property from use. You 

have “reason to know” of an abandonment based on all 

the facts and circumstances concerning the status of the 

property. You will be deemed to know all the information 

that would have been discovered through a reasonable 

inquiry when, in the ordinary course of business, you 

become aware or should become aware of circumstances 

indicating that the property has been abandoned. If you 

expect to commence a foreclosure, execution, or similar 

sale within 3 months of the date you had reason to know 

that the property was abandoned, reporting is required as 

of the date you acquire an interest in the property or a 

third party purchases the property at such sale. If you 

expect to but do not commence such action within 3 

months, the reporting requirement arises at the end of the 

3-month period.

Statements to Borrowers

If you are required to file Form 1099-A, you must provide a 

statement to the borrower. Furnish a copy of Form 1099-A 

or an acceptable substitute statement to each borrower. 

For more information about the requirement to furnish a 

statement to the borrower, see part M in the current 

General Instructions for Certain Information Returns.

Truncating borrower's TIN on statements. Pursuant to 

Regulations section 301.6109-4, all filers of Form 1099-A 

may truncate a borrower's TIN (social security number 

(SSN), individual taxpayer identification number (ITIN), 

adoption taxpayer identification number (ATIN), or 

employer identification number (EIN)) on payee 

statements. Truncation is not allowed on any documents 

the filer files with the IRS. A lender's TIN may not be 

truncated on any form. See part J in the current General 

Instructions for Certain Information Returns.

Account Number

The account number is required if you have multiple 

accounts for a borrower for whom you are filing more than 

one Form 1099-A. Additionally, the IRS encourages you 

to designate an account number for all Forms 1099-A that 

you file. See part L in the current General Instructions for 

Certain Information Returns.

Box 1. Date of Lender's Acquisition or 

Knowledge of Abandonment

For an acquisition, enter the date you acquired the 

secured property. An interest in the property is generally 

acquired on the earlier of the date title is transferred to the 

lender or the date possession and the burdens and 

benefits of ownership are transferred to the lender. If an 

objection period is provided by law, use the date the 

objection period expires. If you purchase the property at a 

sale held to satisfy the debt, such as at a foreclosure or 

execution sale, use the later of the date of sale or the date 

the borrower's right of redemption, if any, expires.

For an abandonment, enter the date you knew or had 

reason to know that the property was abandoned unless 

you expect to commence a foreclosure, execution, or 

similar action within 3 months, as explained earlier. If a 

third party purchases the property at a foreclosure, 

execution, or similar sale, the property is treated as 

abandoned, and you have reason to know of its 

abandonment on the date of sale.

Box 2. Balance of Principal Outstanding

Enter the balance of the debt outstanding at the time the 

interest in the property was acquired or on the date you 

first knew or had reason to know that the property was 

abandoned. Include only unpaid principal on the original 

debt. Do not include accrued interest or foreclosure costs.

Box 3. Reserved for Future Use

Box 4. Fair Market Value (FMV) of Property

For a foreclosure, execution, or similar sale, enter the 

FMV of the property. See Temporary Regulations section 

1.6050J-1T, Q/A-32. Generally, the gross foreclosure bid 

price is considered to be the FMV. If an abandonment or 

voluntary conveyance to the lender in lieu of foreclosure 

occurred and you placed an “X” in the checkbox in box 5, 

enter the appraised value of the property. Otherwise, 

make no entry in this box.

Box 5. Was Borrower Personally Liable for 

Repayment of the Debt

If the borrower was personally liable for repayment of the 

debt at the time the debt was created or, if modified, at the 

time of the last modification, enter an “X” in the checkbox.

Box 6. Description of Property

Enter a general description of the property. For real 

property, you must generally enter the address of the 

property, or, if the address does not sufficiently identify 

the property, enter the section, lot, and block.

-2- Instructions for Forms 1099-A and 1099-C (Rev. 01-2022)
For personal property, enter the applicable type, make, 

and model. For example, describe a car as “Car—2017 

Honda Accord.” Use a category such as “Office 

Equipment” to describe more than one piece of personal 

property, such as six desks and seven computers. Enter 

“CCC” for crops forfeited on Commodity Credit 

Corporation loans.

Specific Instructions for Form 1099-C

The creditor's phone number must be provided in 

the creditor's information box. It should be a 

central number for all canceled debts at which a 

person may be reached who will ensure the debtor is 

connected with the correct department.

Do not file Form 1099-C when fraudulent debt is 

canceled due to identity theft. Form 1099-C is to 

be used only for cancellations of debts for which 

the debtor actually incurred the underlying debt.

File Form 1099-C, Cancellation of Debt, for each 

debtor for whom you canceled a debt owed to you of $600 

or more if:

1. You are an entity described under Who Must File, 

later; and

2. An identifiable event has occurred. It does not 

matter whether the actual cancellation is on or before the 

date of the identifiable event. See When Is a Debt 

Canceled, later.

Form 1099-C must be filed regardless of whether 

the debtor is required to report the debt as 

income.

The debtor may be an individual, corporation, 

partnership, trust, estate, association, or company.

Do not combine multiple cancellations of a debt to 

determine whether you meet the $600 reporting 

requirement unless the separate cancellations are under a 

plan to evade the Form 1099-C requirements.

Coordination With Form 1099-A

If, in the same calendar year, you cancel a debt of $600 or 

more in connection with a foreclosure or abandonment of 

secured property, it is not necessary to file both Form 

1099-A, Acquisition or Abandonment of Secured 

Property, and Form 1099-C for the same debtor. You may 

file Form 1099-C only. You will meet your Form 1099-A 

filing requirement for the debtor by completing boxes 4, 5, 

and 7 on Form 1099-C. However, you may file both Forms 

1099-A and 1099-C; if you do file both forms, do not 

complete boxes 4, 5, and 7 on Form 1099-C. See the 

Specific Instructions for Form 1099-A, earlier, and Box 4. 

Debt Description, Box 5. Check Here if the Debtor Was 

Personally Liable for Repayment of the Debt, and Box 7. 

Fair Market Value (FMV) of Property, later.

Who Must File

File Form 1099-C if you are any of the following.

1. A financial institution described in section 581 or 

591(a) (such as a domestic bank, trust company, building 

and loan association, or savings and loan association).

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2. A credit union.

3. Any of the following, its successor, or subunit of one 

of the following.

a. Federal Deposit Insurance Corporation.

b. National Credit Union Administration.

c. Any other federal executive agency, including 

government corporations.

d. Any military department.

e. U.S. Postal Service.

f. Postal Rate Commission.

4. A corporation that is a subsidiary of a financial 

institution or credit union, but only if, because of your 

affiliation, you are subject to supervision and examination 

by a federal or state regulatory agency.

5. A federal government agency including:

a. A department,

b. An agency,

c. A court or court administrative office, or

d. An instrumentality in the judicial or legislative 

branch of the government.

6. Any organization whose significant trade or 

business is the lending of money, such as a finance 

company or credit card company (whether or not affiliated 

with a financial institution). The lending of money is a 

significant trade or business if money is lent on a regular 

and continuing basis. Regulations section 1.6050P-2(b) 

lists three safe harbors under which reporting may not be 

required for the current year. See Safe harbor rules next.

Safe harbor rules. The three safe harbor rules in which 

an entity will not be considered to have a significant trade 

or business of lending money are the following.

1. No prior year reporting required. An organization 

will not have a significant trade or business of lending 

money for the current year if the organization was not 

required to report in the prior year and if its gross income 

from lending money in the most recent test year (see (3) 

below) is less than both 15% of the organization's gross 

income and $5 million.

2. Prior year reporting requirement. An organization 

that had a prior year reporting requirement will not have a 

significant trade or business of lending money for the 

current year if, for each of the 3 most recent test years, its 

gross income from lending money is less than both 10% 

of the organization's gross income and $3 million.

3. No test year. Newly formed organizations are 

considered not to have a significant trade or business of 

lending money even if the organization lends money on a 

regular and continuing basis. However, this safe harbor 

does not apply to an entity formed or availed of for the 

principal purpose of holding loans acquired or originated 

by another entity. In this instance, the transferee entity 

(including real estate mortgage investment conduits 

(REMICs) and pass-through securitized indebtedness 

arrangements) may be required to report cancellation of 

indebtedness on Form 1099-C. See Regulations section 

1.6050P-1(e)(5).

Instructions for Forms 1099-A and 1099-C (Rev. 01-2022) -3-
Test year defined. A test year is a tax year of the 

organization that ends before July 1 of the previous 

calendar year.

For example, X, a calendar year taxpayer who has a 

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. 

However, for year 3, X's test year will be year 1. In year 3, 

year 1 is the only year that ended before July 1 of the 

previous calendar year (in this example, year 2).

Penalties. There are penalties for failure to file correct 

information returns by the due date and for failure to 

furnish correct payee statements. See part O in the 

current General Instructions for Certain Information 

Returns for details.

Exceptions. Until further guidance is issued, no 

penalty will apply for failure to file Form 1099-C, or provide 

statements to debtors, for amounts:

• Discharged in nonlending transactions, or

• Forgiven under the terms of a debt obligation.

Multiple creditors. If a debt is owned (or treated as 

owned for federal income tax purposes) by more than one 

creditor, each creditor that is described under Who Must 

File, earlier, must issue a Form 1099-C if that creditor's 

part of the canceled debt is $600 or more. A creditor will 

be deemed to have met its filing requirements if a lead 

bank, fund administrator, or other designee of the creditor 

complies on its behalf. The designee may file a single 

Form 1099-C reporting the aggregate canceled debt or 

may file Form 1099-C for that creditor's part of the 

canceled debt. Use any reasonable method to determine 

the amount of each creditor's part of the canceled debt.

Debt owned by a partnership is treated as owned by 

the partners and must follow the rules for multiple 

creditors.

Pass-throughs and REMICs. Until further guidance is 

issued, no penalty will apply for failure to file Form 

1099-C, or provide statements to debtors, for a canceled 

debt held in a pass-through securitized debt arrangement 

or held by a REMIC. However, see item 3 under Safe 

harbor rules, earlier.

A pass-through securitized debt arrangement is any 

arrangement in which one or more debts are pooled and 

held for 20 or more persons whose interests in the debt 

are undivided co-ownership interests that are freely 

transferable. Co-ownership interests that are actively 

traded personal property (as defined in Regulations 

section 1.1092(d)-1) are presumed to meet these 

requirements.

Debt Defined

A debt is any amount owed to you, including stated 

principal, stated interest, fees, penalties, administrative 

costs, and fines. The amount of debt canceled may be all 

or only part of the total amount owed. However, for a 

lending transaction, you are required to report only the 

stated principal. See Exceptions, later.

When To File

File Form 1099-C in the year following the calendar year 

in which the identifiable event occurs. See Exceptions, 

later. If you cancel a debt before an identifiable event 

occurs, you may choose to file Form 1099-C for the year 

of cancellation. No further reporting is required even if a 

later identifiable event occurs with respect to an amount 

previously reported. Also, you are not required to file an 

additional or corrected Form 1099-C if you receive 

payment on a prior year debt.

When Is a Debt Canceled?

A debt is deemed canceled on the date an identifiable 

event occurs or, if earlier, the date of the actual discharge 

if you choose to file Form 1099-C for the year of 

cancellation. An identifiable event is one of the following.

1. A discharge in bankruptcy under title 11 of the U.S. 

Code. For information on certain discharges in bankruptcy 

not required to be reported, see Exceptions, later. Enter 

“A” in box 6 to report this identifiable event.

2. A cancellation or extinguishment making the debt 

unenforceable in a receivership, foreclosure, or similar 

federal nonbankruptcy or state court proceeding. Enter 

“B” in box 6 to report this identifiable event.

3. A cancellation or extinguishment when the statute 

of limitations for collecting the debt expires, or when the 

statutory period for filing a claim or beginning a deficiency 

judgment proceeding expires. Expiration of the statute of 

limitations is an identifiable event only when a debtor's 

affirmative statute of limitations defense is upheld in a final 

judgment or decision of a court and the appeal period has 

expired. Enter “C” in box 6 to report this identifiable event.

4. A cancellation or extinguishment when the creditor 

elects foreclosure remedies that by law extinguish or bar 

the creditor's right to collect the debt. This event applies to 

a mortgage lender or holder who is barred by local law 

from pursuing debt collection after a “power of sale” in the 

mortgage or deed of trust is exercised. Enter “D” in box 6 

to report this identifiable event.

5. A cancellation or extinguishment making the debt 

unenforceable under a probate or similar proceeding. 

Enter “E” in box 6 to report this identifiable event.

6. A discharge of indebtedness under an agreement 

between the creditor and the debtor to cancel the debt at 

less than full consideration (for example, short sales). 

Enter “F” in box 6 to report this identifiable event.

7. A discharge of indebtedness because of a decision 

or a defined policy of the creditor to discontinue collection 

activity and cancel the debt. A creditor's defined policy 

can be in writing or an established business practice of 

the creditor. A creditor's established practice to stop 

collection activity and abandon a debt when a particular 

nonpayment period expires is a defined policy. Enter “G” 

in box 6 to report this identifiable event.

8. Other actual discharge before identifiable event. 

Enter “H” in box 6 if there is an other actual discharge 

before one of the identifiable events listed above.

Exceptions

You are not required to report on Form 1099-C the 

following.

1. Certain bankruptcies. You are not required to report 

a debt discharged in bankruptcy unless you know from 

information included in your books and records that the 

debt was incurred for business or investment purposes. If 

-4- Instructions for Forms 1099-A and 1099-C (Rev. 01-2022)
you are required to report a business or investment debt 

discharged in bankruptcy, report it for the later of:

a. The year in which the amount of discharged debt 

can first be determined, or

b. The year in which the debt is discharged in 

bankruptcy.

A debt is incurred for business if it is incurred in 

connection with the conduct of any trade or business 

other than the trade or business of performing services as 

an employee. A debt is incurred for investment if it is 

incurred to purchase property held for investment (as 

defined in section 163(d)(5)).

2. Interest. You are not required to report interest. 

However, if you choose to report interest as part of the 

canceled debt in box 2, you must show the interest 

separately in box 3.

3. Nonprincipal amounts. Nonprincipal amounts 

include penalties, fines, fees, and administrative costs. 

For a lending transaction, you are not required to report 

any amount other than stated principal. A lending 

transaction occurs when a lender loans money to, or 

makes advances on behalf of, a borrower (including 

revolving credit and lines of credit). For a nonlending 

transaction, nonprincipal amounts are included in the 

debt. However, until further guidance is issued, no 

penalties will be imposed for failure to report these 

amounts in nonlending transactions.

4. Foreign debtors. Until further guidance is issued, no 

penalty will apply if a financial institution does not file Form 

1099-C for a debt canceled by its foreign branch or 

foreign office for a foreign debtor, provided all the 

following apply.

a. The financial institution is engaged in the active 

conduct of a banking or similar business outside the 

United States.

b. The branch or office is a permanent place of 

business that is regularly maintained, occupied, and used 

to carry on a banking or similar financial business.

c. The business is conducted by at least one 

employee of the branch or office who is regularly in 

attendance at the place of business during normal 

working hours.

d. The indebtedness is extended outside the United 

States by the branch or office in connection with that trade 

or business.

e. The financial institution does not know or have 

reason to know that the debtor is a U.S. person.

5. Related parties. Generally, a creditor is not required 

to file Form 1099-C for the deemed cancellation of a debt 

that occurs when the creditor acquires the debt of a 

related debtor, becomes related to the debtor, or transfers 

the debt to another creditor related to the debtor. 

However, if the transfer to a related party by the creditor 

was for the purpose of avoiding the Form 1099-C 

requirements, Form 1099-C is required. See section 

108(e)(4).

6. Release of a debtor. You are not required to file 

Form 1099-C if you release one of the debtors on a debt 

as long as the remaining debtors are liable for the full 

unpaid amount.

7. Guarantor or surety. You are not required to file 

Form 1099-C for a guarantor or surety. A guarantor is not 

a debtor for purposes of filing Form 1099-C even if 

demand for payment is made to the guarantor.

8. Seller financing. Organizations whose principal 

trade or business is the sale of nonfinancial goods or 

nonfinancial services, and who extend credit to customers 

in connection with the purchase of those nonfinancial 

goods and nonfinancial services, are not considered to 

have a significant trade or business of lending money, 

with respect to the credit extended in connection with the 

purchase of those goods or services, for reporting 

discharge of indebtedness on Form 1099-C. See 

Regulations section 1.6050P-2(c). But the reporting 

applies if a separate financing subsidiary of the retailer 

extends the credit to the retailer's customers.

9. Student loan indebtedness. For discharges 

occurring after December 31, 2017, you are not required 

to file Form 1099-C for student loan indebtedness if the 

discharge of the debt is due to the student's death or 

permanent and total disability.

Rev. Proc. 2020-11 establishes a safe harbor 

extending the relief provided under Rev. Proc. 2015-57, 

2015-51 I.R.B. 863, Rev. Proc. 2017-24, 2017-7 I.R.B. 

916, and Rev. Proc. 2018-39, 2018-34 I.R.B. 319, to 

additional taxpayers who took out federal or private 

student loans to finance attendance at a nonprofit or 

for-profit school. Relief is also extended to any creditor 

that is an applicable entity, as defined by section 6050P 

and the regulations thereunder, that would otherwise be 

required to file information returns and furnish payee 

statements pursuant to section 6050P for the discharge of 

any indebtedness within the scope of this revenue 

procedure. The IRS will not assert that a creditor that is an 

applicable entity, as defined by section 6050P and the 

regulations thereunder, must file information returns and 

furnish payee statements pursuant to section 6050P for 

the discharge of any indebtedness within the scope of 

these revenue procedures. See Rev. Proc. 2020-11 to 

determine whether a creditor or taxpayer qualifies for 

relief.

Multiple Debtors

For debts of $10,000 or more incurred after 1994 that 

involve debtors who are jointly and severally liable for the 

debt, you must report the entire amount of the canceled 

debt on each debtor's Form 1099-C. Multiple debtors are 

jointly and severally liable for a debt if there is no clear and 

convincing evidence to the contrary. If it can be shown 

that joint and several liability does not exist, a Form 

1099-C is required for each debtor for whom you canceled 

a debt of $600 or more.

For debts incurred before 1995 and for debts of less 

than $10,000 incurred after 1994, you must file Form 

1099-C only for the primary (or first-named) debtor.

If you know or have reason to know that the multiple 

debtors were husband and wife who were living at the 

same address when the debt was incurred, and you have 

no information that these circumstances have changed, 

you may file only one Form 1099-C.

Instructions for Forms 1099-A and 1099-C (Rev. 01-2022) -5-
Recordkeeping

If you are required to file Form 1099-C, you must retain a 

copy of that form or be able to reconstruct the data for at 

least 4 years from the due date of the return.

Requesting TINs

You must make a reasonable effort to obtain the correct 

name and TIN of the person whose debt was canceled. 

You may obtain the TIN when the debt is incurred. If you 

do not obtain the TIN before the debt is canceled, you 

must request the debtor's TIN. Your request must clearly 

notify the debtor that the IRS requires the debtor to furnish 

its TIN and that failure to furnish such TIN subjects the 

debtor to a $50 penalty imposed by the IRS. You may use 

Form W-9, Request for Taxpayer Identification Number 

and Certification, to request the TIN. However, a debtor is 

not required to certify his or her TIN under penalties of 

perjury.

Statements to Debtors

If you are required to file Form 1099-C, you must provide a 

copy of Form 1099-C or an acceptable substitute 

statement to each debtor. In the current General 

Instructions for Certain Information Returns, see:

• Part M for more information about the requirement to 

furnish a statement to the debtor, and

• Part J for specific procedures to complete Form 1099-C 

for debtors in bankruptcy.

Truncating debtor's TIN on payee statements. 

Pursuant to Regulations section 301.6109-4, all filers of 

Form 1099-C may truncate a debtor's TIN (social security 

number (SSN), individual taxpayer identification number 

(ITIN), adoption taxpayer identification number (ATIN), or 

employer identification number (EIN)) on payee 

statements. Truncation is not allowed on any documents 

the filer files with the IRS. A creditor's TIN may not be 

truncated on any form. See part J in the current General 

Instructions for Certain Information Returns.

Account Number

The account number is required if you have multiple 

accounts for a debtor for whom you are filing more than 

one Form 1099-C. Additionally, the IRS encourages you 

to designate an account number for all Forms 1099-C that 

you file. See part L in the current General Instructions for 

Certain Information Returns.

Box 1. Date of Identifiable Event

Enter the date of the identifiable event. See When Is a 

Debt Canceled, earlier. However, if you actually cancel a 

debt before an identifiable event and you choose to report 

that cancellation, enter the date that you actually canceled 

the debt.

Box 2. Amount of Debt Discharged

Enter the amount of the canceled debt. See Debt Defined 

and Exceptions, earlier. The amount of the canceled debt 

cannot be greater than the total debt less any amount the 

lender receives in satisfaction of the debt by means of a 

settlement agreement, foreclosure sale, a short sale that 

partially satisfied the debt, etc.

Box 3. Interest if Included in Box 2

Enter any interest you included in the canceled debt in 

box 2. You are not required to report interest in box 2. But 

if you do, you must also report it in box 3.

Box 4. Debt Description

Enter a description of the origin of the debt, such as 

student loan, mortgage, or credit card expenditure. Be as 

specific as possible. If you are filing a combined Form 

1099-C and 1099-A, include a description of the property.

Box 5. Check Here if the Debtor Was Personally 

Liable for Repayment of the Debt

If the debtor was personally liable for repayment of the 

debt at the time the debt was created or, if modified, at the 

time of the last modification, enter an “X” in the checkbox.

Box 6. Identifiable Event Code

Enter the appropriate code to report the nature of the 

identifiable event. For more information about the code to 

use when reporting each identifiable event, see When Is a 

Debt Canceled, earlier, and Regulations section 

1.6050P-1(b)(2). Also see Pub. 4681.

Box 7. Fair Market Value (FMV) of Property

FMV should include the appraised value of the 

property if the property is sold in a short sale.

If you are filing a combined Form 1099-C and 1099-A for a 

foreclosure, execution, or similar sale, enter the FMV of 

the property. Generally, the gross foreclosure bid price is 

considered to be the FMV. If an abandonment or voluntary 

conveyance to the lender in lieu of foreclosure occurred, 

enter the appraised value of the property. 

TIP

-6- Instructions for Forms 1099-A and 1099-C (Rev. 01-2022)