1099-C

Cancellation of Debt

Agency
IRS
Revision
Rev. April 2025
Fillable fields
33
Pages
4
Official source
IRS form page
Checked
October 21, 2026
Fill 1099-C online
Page 1 of form 1099-C

Form 1099-C: Cancellation of Debt

Form 1099-C, Cancellation of Debt, is an information return a creditor files with the IRS. The IRS page says it is filed for each debtor for whom $600 or more of a debt was canceled, when the creditor is an applicable financial entity and an identifiable event has occurred. The instructions say the debtor may be an individual, corporation, partnership, trust, estate, association, or company, and that the form is filed regardless of whether the debtor is required to report the debt as income.

The creditor sends Copy A to the IRS and gives Copy B to the debtor. Copy B carries the Instructions for Debtor, which explain each box and point to Pub. 4681 for exceptions and exclusions such as bankruptcy and insolvency.

The PDF notes that Copy A printed from IRS.gov is for information only and cannot be scanned, while Copy B and the other black copies may be printed and given to the debtor. You can fill out the PDF free in your browser on this page and download it without an account.

Top of page 1 of Form 1099-C: Cancellation of Debt, as printed by IRS

What's on Form 1099-C

Creditor and debtor boxes

Creditor's name, address and telephone number, creditor's TIN, debtor's TIN, debtor's name and address, and an account number.

Boxes 1 and 2

Date of identifiable event and amount of debt discharged.

Boxes 3 and 4

Interest, if included in box 2, and a description of the debt.

Box 5

A check box showing the debtor was personally liable for repayment of the debt.

Box 6: event codes

A code from A to H: bankruptcy, other judicial debt relief, statute of limitations, foreclosure election, probate, by agreement, decision or policy to discontinue collection, or other actual discharge.

Box 7 and the copies

Fair market value of property. The PDF holds Copy A for the IRS and Copy B for the debtor, with VOID and CORRECTED boxes.

How to fill out Form 1099-C

  1. 1

    Creditor and debtor details

    The instructions say the creditor's phone number goes in the creditor's box, as a central number for all canceled debts. The debtor's TIN may be truncated on payee statements but not on documents filed with the IRS.

  2. 2

    Account number

    The instructions say it is required when a debtor has multiple accounts with more than one Form 1099-C, and the IRS encourages one on every form.

  3. 3

    Box 1

    Enter the date of the identifiable event. If a debt is canceled before an identifiable event and that cancellation is reported, enter the date it was actually canceled.

  4. 4

    Boxes 2 and 3

    Enter the canceled amount. The instructions say it cannot be greater than the total debt less any amount received in satisfaction of the debt. Interest included in box 2 is also shown in box 3.

  5. 5

    Boxes 4 and 5

    Describe the origin of the debt, such as student loan, mortgage, or credit card expenditure. Enter an X in box 5 if the debtor was personally liable when the debt was created or last modified.

  6. 6

    Boxes 6 and 7

    Enter the event code. Box 7 holds the property's fair market value for a combined Form 1099-C and 1099-A or a short sale. The instructions say the gross foreclosure bid price is generally the FMV.

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When to file, copies and records

When to file

The instructions say to file Form 1099-C in the year following the calendar year in which the identifiable event occurs.

Copy A for the IRS

The PDF says not to print and file Copy A downloaded from IRS.gov, because a penalty may be imposed for filing forms that cannot be scanned. Official scannable forms can be ordered at IRS.gov/EmployerForms.

E-filing

The PDF says a filer with 10 or more information returns may be required to e-file, and points to IRS.gov/InfoReturn for e-file options.

Statement to the debtor

Each debtor gets a copy of Form 1099-C or an acceptable substitute statement. Copy B may be downloaded, printed and used for this.

Combining with Form 1099-A

For a cancellation of $600 or more tied to a foreclosure or abandonment in the same year, the instructions say the creditor may file Form 1099-C only, completing boxes 4, 5 and 7.

Recordkeeping

The instructions say to keep a copy, or be able to reconstruct the data, for at least 4 years from the due date of the return.

Related forms

Who files Form 1099-C?

  • Banks and credit unions

    Financial institutions such as a domestic bank, trust company, building and loan association, or savings and loan association, plus credit unions and certain supervised subsidiaries.

  • Federal agencies

    Federal executive agencies including government corporations, the FDIC, the NCUA, military departments, the U.S. Postal Service, and federal departments, agencies and courts.

  • Lending businesses

    Any organization whose significant trade or business is lending money, such as a finance company or credit card company. The instructions describe three safe harbor rules.

  • Debtors receive Copy B

    The creditor gives each debtor a copy of Form 1099-C or an acceptable substitute statement. Copy B says to keep it for your records.

  • Not for identity theft

    The instructions say not to file Form 1099-C when fraudulent debt is canceled due to identity theft.

  • Not for guarantors

    No form is required for a guarantor or surety, or for one released debtor when the remaining debtors stay liable for the full unpaid amount.

The creditor completes and files the form. The debtor receives a copy and does not file it. The instructions list the entities that file.

Official sources and the blank

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Questions about Form 1099-C

Why did I receive a Form 1099-C?

The Instructions for Debtor say a federal government agency or an applicable financial entity discharged a debt you owed, or an identifiable event occurred that is or is deemed to be a discharge of a debt of $600 or more.

Is all canceled debt counted as income?

Copy B says a debtor may not have to include all of the canceled debt in income, and names exceptions and exclusions such as bankruptcy and insolvency. It points to Pub. 4681 for details.

What if the amount in box 2 looks wrong?

Copy B says that if you don't agree with the amount, contact your creditor.

Does a debtor file Form 1099-C?

No. The creditor files it with the IRS and gives the debtor Copy B, which says to keep it for your records.

Can small cancellations be added up to reach $600?

The instructions say not to combine multiple cancellations of a debt to meet the $600 requirement unless they are under a plan to evade the Form 1099-C requirements.

Why does my form show only part of my SSN?

Copy B says the form may show only the last four digits of your TIN for your protection, but the creditor has reported your complete TIN to the IRS.

Does a creditor file both Form 1099-A and Form 1099-C?

It may file Form 1099-C only and complete boxes 4, 5 and 7. If it files both, the instructions say not to complete boxes 4, 5 and 7 on Form 1099-C.