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[Federal Register Volume 61, Number 126 (Friday, June 28, 1996)]
[Notices]
[Pages 33796-33797]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-16495]

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[[Page 33797]]

DEPARTMENT OF THE TREASURY
Internal Revenue Service

Proposed Collection; Comment Request for Form 1099-C

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice and request for comments.

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SUMMARY: The Department of the Treasury, as part of its continuing 
effort to reduce paperwork and respondent burden, invites the general 
public and other Federal agencies to take this opportunity to comment 
on proposed and/or continuing information collections, as required by 
the Paperwork Reduction Act of 1995, Public Law 104-13 (44 U.S.C. 
3506(c)(2)(A)). Currently, the IRS is soliciting comments concerning 
Form 1099-C, Cancellation of Debt.

DATES: Written comments should be received on or before August 27, 1996 
to be assured of consideration.

ADDRESSES: Direct all written comments to Garrick R. Shear, Internal 
Revenue Service, room 5571, 1111 Constitution Avenue NW., Washington, 
DC 20224.

FOR FURTHER INFORMATION CONTACT: Requests for additional information or 
copies of the form(s) and instructions should be directed to Martha R. 
Brinson, (202) 622-3869, Internal Revenue Service, room 5571, 1111 
Constitution Avenue NW., Washington, DC 20224.

SUPPLEMENTARY INFORMATION:

    Title: Cancellation of Debt.
    OMB Number: 1545-1424.
    Form Number: Form 1099-C.
    Abstract: Form 1099-C is used by Federal government agencies, 
financial institutions, and credit unions to report the cancellation or 
forgiveness of a debt of $600 or more, as required by section 6050P of 
the Internal Revenue Code. IRS uses the form to verify compliance with 
the reporting rules and to verify that the debtor has included the 
proper amount of canceled debt in income on his or her tax return.

Current Actions

Changes to Form 1099-C
    Box 4 and the instructions for box 4 (located on the back of Copy 
B) were eliminated. The regulations under Code section 6050P eliminated 
the separate reporting of penalties, fines, and administrative costs, 
effective 12/22/96. The space for box 4 was retained on the form so it 
can be used in the future for something else.
    Type of Review: Revision of a currently approved collection.
    Affected Public: Business or other for-profit organizations, not-
for-profit institutions, and the Federal government.
    Estimated Number of Respondents: 350,000.
    Estimated Time Per Respondent: 11 min.
    Estimated Total Annual Burden Hours: 65,994.
    Request for Comments: Comments submitted in response to this notice 
will be summarized and/or included in the request for OMB approval. All 
comments will become a matter of public record. Comments are invited 
on: (a) Whether the collection of information is necessary for the 
proper performance of the functions of the agency, including whether 
the information shall have practical utility; (b) the accuracy of the 
agency's estimate of the burden of the collection of information; (c) 
ways to enhance the quality, utility, and clarity of the information to 
be collected; (d) ways to minimize the burden of the collection of 
information on respondents, including through the use of automated 
collection techniques or other forms of information technology; and (e) 
estimates of capital or start-up costs and costs of operation, 
maintenance, and purchase of services to provide information.

    Approved: June 20, 1996.
Garrick R. Shear,
IRS Reports Clearance Officer.
[FR Doc. 96-16495 Filed 6-27-96; 8:45 am]
BILLING CODE 4830-01-P
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