Change to Form 1099-C, Cancellation of Debt, will require lenders to provide more information about the date the debt is cancelled
Global Information Reporting & Withholding Newsbrief()
Under IRC section 6050P, certain lenders are required to report to the IRS and the debtor information about a full or partial discharge of indebtedness of $600 or more during the calendar year. Lenders use the Form 1099-C, Cancellation of Debt, to satisfy their reporting obligation which must be filed with the IRS by February 28 (or March 31 if electronically filed) of the year following the calendar year in which the debt is cancelled. A copy of the Form 1099-C must be provided to the debtor by January 31 of the year following the calendar year in which the debt is cancelled.