VOIDPaper only: marks a form on a sheet that should be ignored. It is not a correction; a filed return is undone with a corrected return.How corrections workCORRECTEDChecked on a return that replaces one already filed. Which fields to repeat, and whether two returns are needed, depends on the error.Type 1 vs Type 2 correctionsCreditor's nameWhat goes hereThe creditor's name and address, and a phone number. The phone number is required: a central number for all canceled debts where someone can connect the debtor with the right department.Watch forOnly listed creditors file: banks, credit unions, federal agencies, and organizations whose significant business is lending money. Do not file when fraudulent debt is canceled because of identity theft.Check the filer blockBox 1: Date of identifiable eventWhat goes hereThe date of the identifiable event (the event coded in box 6). File for the year it occurs.Watch forIf you actually cancel the debt before an identifiable event and choose to report it then, enter the date you canceled it. No further reporting is due when a later identifiable event occurs.Click to open the row in the box tableBox 2: Amount of debt dischargedWhat goes hereThe amount of debt canceled. For a lending transaction only stated principal is required; interest, fees and penalties are not.Threshold$600 or more per debtor. Do not add separate cancellations together unless they are part of a plan to avoid filing.Watch forIt cannot exceed the total debt less what you received in satisfaction, such as a settlement, foreclosure sale or short sale. Joint and several debts of $10,000 or more go in full on each debtor's form.Click to open the row in the box tableBox 3: Interest, if included in box 2What goes hereAny interest you included in the canceled debt in box 2.Watch forReporting interest is optional. But if you put interest in box 2, you must also show it here.Click to open the row in the box tableCalendar yearThe year the payment was made, not the year you file. The 2026 forms cover payments in 2026 and are filed in 2027.The 2027 calendarCreditor's TINThe EIN the returns are filed under; it must match the filer name on the first line. A sole proprietor may use an SSN, with the owner's name first.Check the filer blockDebtor's TINWhat goes hereThe debtor's SSN, ITIN, ATIN or EIN. You must make a reasonable effort to get the correct name and TIN, and may get it when the debt is incurred.Watch forYour request must tell the debtor the IRS requires the TIN and that not giving it brings a $50 penalty. A Form W-9 works, but the debtor need not certify the TIN. You may truncate it on the debtor's copy only.Match it before you fileBox 4: Debt descriptionWhat goes hereWhere the debt came from, such as student loan, mortgage or credit card expenditure. Be as specific as you can.Watch forOn a combined Form 1099-C and 1099-A, describe the property here too.Click to open the row in the box tableDebtor's nameThe name the IRS has for this TIN: an individual's own name for an SSN, the legal name for an EIN; a DBA goes on the second line. This is what TIN matching compares.Which name goes firstDebtor's street addressWhere the recipient copy is mailed. From the W-9 line 5; the IRS does not match it, but an undeliverable copy is a furnishing failure.Box 5: Debtor was personally liableCheck it whenThe debtor was personally liable for repayment when the debt was created or, if modified, at the last modification.Watch forThis is one of the boxes (4, 5 and 7) that satisfies Form 1099-A. If you file a separate Form 1099-A for the property, leave boxes 4, 5 and 7 blank here.Click to open the row in the box tableDebtor's city or townCity of the mailing address, from the W-9 line 6.Account numberWhat goes hereYour account number for this debtor's canceled debt.Required whenYou have more than one account for the debtor and file more than one Form 1099-C for them. The IRS encourages an account number on every Form 1099-C.Box 6: Identifiable event codeWhat goes hereA code for the event: A bankruptcy, B other judicial debt relief, C statute of limitations or deficiency period expired, D foreclosure election, E probate, F agreement, G decision or policy to stop collection, H other actual discharge before an identifiable event.Watch forCode C applies only when a court upholds the debtor's statute of limitations defense in a final judgment and the appeal period has ended.Click to open the row in the box tableBox 7: Fair market value of propertyWhat goes hereOnly on a combined Form 1099-C and 1099-A: the property's fair market value. For a foreclosure or similar sale it is generally the gross foreclosure bid price; for an abandonment or deed in lieu, the appraised value.Watch forFor a short sale, include the appraised value of the property. Leave it blank if you also file a separate Form 1099-A.Click to open the row in the box tableHover over a box for what goes in it; click to open its row in the table below. On a touch screen, tap the box to jump to the row.
Who must file Form 1099-C
File Form 1099-C for each debtor for whom you canceled $600 or more of a debt owed to you if you are an applicable entity: a financial institution, a credit union, the FDIC, NCUA or RTC, a federal executive agency or the U.S. Postal Service, or any organization with a significant trade or business of lending money. The return is required when an identifiable event occurs: discharge in bankruptcy (for business or investment debt), a receivership or foreclosure that extinguishes the debt, expiration of the statute of limitations, a probate or similar proceeding, an agreed discharge, or a decision to discontinue collection. The 36-month nonpayment testing period was removed from the regulations in 2016 and is no longer an identifiable event.
If you also acquired or abandoned property securing the debt in the same year, Form 1099-A may be combined into the 1099-C.
Threshold: $600, $600 or more of principal canceled (interest and fees optional) on the occurrence of an identifiable event.
What is reported, box by box
| Box | What it reports | Notes |
|---|---|---|
| 1 | Date of identifiable event | The date of the identifiable event coded in box 6. If you cancel the debt earlier and choose to report it in that year, use the date you canceled it. |
| 2 | Amount of debt discharged | $600 or more per debtor. The canceled amount; for a lending transaction only stated principal is required. It cannot exceed the debt less what you received in a settlement, foreclosure or short sale. Joint and several debts of $10,000 or more go in full on each debtor's form. |
| 3 | Interest, if included in box 2 | OptionalInterest you chose to include in box 2. If box 2 includes interest, it must be shown here. |
| 4 | Debt description | Where the debt came from (student loan, mortgage, credit card). On a combined 1099-C and 1099-A, also describe the property. |
| 5 | Debtor was personally liable | CheckboxCheck it when the debtor was personally liable when the debt was created or last modified. Leave it blank if you file a separate 1099-A. |
| 6 | Identifiable event code | One code, A to H: A bankruptcy, B other judicial relief, C statute of limitations, D foreclosure election, E probate, F agreement, G decision or policy to stop collection, H other actual discharge. Code C only after a final court judgment upholds the defense. All box 6 codes. |
| 7 | Fair market value of property | Only when this form also covers a foreclosure or abandonment in place of a separate 1099-A: the fair market value (generally the gross foreclosure bid, or the appraised value for an abandonment, deed in lieu or short sale). |
Identifiable event codes for box 6 (8 codes)
Enter the one code for the identifiable event (or earlier actual discharge) that triggers the filing. See Regulations section 1.6050P-1(b)(2) and Pub. 4681.
| Code | Meaning | When to use it |
|---|---|---|
| A | Bankruptcy | Discharge in bankruptcy under title 11 of the U.S. Code. |
| B | Other judicial debt relief | Debt made unenforceable in a receivership, foreclosure, or similar federal nonbankruptcy or state court proceeding. |
| C | Statute of limitations or expiration of deficiency period | Only when the debtor's statute of limitations defense is upheld in a final court judgment and the appeal period has expired. |
| D | Foreclosure election | The creditor elects foreclosure remedies that by law bar collecting the debt, such as a power of sale under a mortgage or deed of trust. |
| E | Debt relief from probate or similar proceeding | Debt made unenforceable in a probate or similar proceeding. |
| F | By agreement | Creditor and debtor agree to cancel the debt for less than full consideration, for example a short sale. |
| G | Decision or policy to discontinue collection | The creditor decides, or has a written or established policy, to stop collection and cancel the debt. |
| H | Other actual discharge before identifiable event | The debt was actually discharged before any of the events in codes A to G occurred. |
Source: Instructions for Forms 1099-A and 1099-C (Rev. April 2025), When Is a Debt Canceled? and Box 6; Form 1099-C (Rev. April 2025), Instructions for Debtor
Box titles follow the current revision of the form. The IRS reads the payer and recipient name, TIN, address, account number and the money boxes; the state boxes are for the state copy only.
Payments that are not reported on Form 1099-C
- Debt canceled by a lender that is not an applicable entity (a trade creditor forgiving an invoice, for example).
- Cancellations under $600, and interest or fees alone.
- Debt of a foreign debtor, certain debts discharged in a Title 11 case where the debt is not business or investment debt, and guarantors or sureties (report to the primary debtor only).
Due dates and extensions
| Copy | Due | For 2026 returns |
|---|---|---|
| To the IRS, paper | February 28 | Monday, March 1, 2027 (February 28 is a Sunday) |
| To the IRS, electronic | March 31 | Wednesday, March 31, 2027 |
| To the recipient | January 31 | Monday, February 1, 2027 (January 31 is a Sunday) |
An automatic 30-day extension is available on Form 8809, filed by the due date on paper or through IRIS; a second 30 days requires a hardship showing. Recipient statements can be extended 30 days on Form 15397, online or by fax only. 10 or more information returns of any type in aggregate must be e-filed (T.D. 9972); IRIS is the only IRS intake system from filing season 2027, FIRE having been retired. A payer who e-files the originals must e-file the corrections.
For 2026 forms filed in 2027: January 31 falls on a Sunday, so that deadline moves to Monday, February 1, 2027; February 28 also falls on a Sunday, so the paper deadline moves to Monday, March 1, 2027. March 31 (electronic) and March 15 are weekdays. February 28 does not become February 29 in a leap year. The compliance calendar has every date with the weekend shifts applied.
Withholding and TIN matching
Canceled debt under section 6050P is not subject to backup withholding and 1099-C is not eligible for the IRS TIN Matching program. The name/TIN pair is nonetheless the most-penalized item on the form: the debtor's record was created at loan origination, often years earlier, and the IRC 6721IRC 6721Internal Revenue Code, Cornell LII penalty for an incorrect TIN applies without a withholding backstop. Keep copies of 1099-C for four years from the due date (three for most information returns).
Name and TIN errors on this form
Every information return is matched by the IRS on the first four characters of the payee's name (the name control) against the TIN. A mismatch produces a CP2100 line the following autumn and, unless the solicitation record is in order, a 972CG penalty the year after: $340 per return for 2026 forms filed in 2027 that are late or wrong, $690 for intentional disregard, with annual maximums of $4,191,500 ($1,397,000 for small filers) under Rev. Proc. 2025-32. The errors that recur on Form 1099-C:
- Co-borrowers. A 1099-C to each debtor who is personally liable, each showing the full amount, each under their own SSN.
- Business loans guaranteed by the owner. Report to the primary debtor (the business, under its EIN), not the guarantor.
- Deceased debtors. To the estate's EIN when the debt is canceled after death.
- Old records. Originations from the 2000s carry names before marriage, divorce and incorporation; run the portfolio through a name/TIN verification before the identifiable-event year.
The name control calculator shows what the IRS will derive from a name line, and the CP2100 guide covers what to do when the notice arrives.
Recipient statements and substitutes
The recipient statement for Form 1099-C need not be a copy of the official form: a substitute may be combined with other account statements or reports, provided every required item is numbered and titled as on the official form, the tax year, form number and form name appear together, the recipient instructions are included, and, for the forms Pub 1099 lists, a telephone number with direct access to someone who can answer questions is shown. Publication 1179 (Rev. Proc. 2026-18) has the specifications; logos, slogans and advertising are not permitted on the statement itself. Statements may be furnished electronically only to a recipient who has affirmatively consented in a way that shows they can access the format, after the disclosures in Pub 1099 part M, and must stay posted through October 15. Copy B may show a truncated TIN (xxx-xx-1234); the IRS copy never may. The consent rules for furnishing statements electronically are under review: Notice 2026-4 asked for comments (due May 23, 2026) on whether the broker rules, and then the rules for every other payee statement, should change.
Corrections and state copies
A wrong amount, code or checkbox is a Type 1 correction: one corrected return with the CORRECTED box checked. The wrong form type is a Type 2 correction: a zeroed-out copy of the original plus a new original, in that order. A wrong or missing payee TIN or name is also Type 2 on paper, but IRIS corrects it in one step on the original record (Publication 5717). Publication 1099 also says you are not required to file a correction for a missing or incorrect TIN if you meet the reasonable-cause standard, only to use the right TIN on the next return, although the IRS encourages the correction. Details and the paper error charts are on the 1099 corrections page.
Form 1099-C is not in the Combined Federal/State Filing program, so any state that requires it must receive it directly. Requirements by state are on the state pages.
Questions people ask about Form 1099-C
The borrower stopped paying three years ago. Do we file?
Nonpayment alone is no longer an identifiable event. File when one of the listed events occurs, including your decision to discontinue collection.
Do we file for a canceled invoice?
Not unless you are an applicable entity; an ordinary business writing off a receivable does not file 1099-C.
Is 1099-C in the Combined Federal/State program?
No.
We filed a 1099-C and then collected the debt after all. What happens to the borrower?
The IRS accounts manual says that if the creditor resumes collection and the debt is paid, "the taxpayer may be entitled to file an amended return to exclude the income for the year it was reported," treated as a reduction of the income reported for the 1099-C year rather than a claim of right adjustment (IRM 21.6.6.2.10)IRM 21.6.6.2.10Internal Revenue Manual, revised Nov. 16, 2020, irs.gov. Expect the borrower to ask for a statement of the amounts collected.
Other federal forms
1042-S · 1097-BTC · 1098 · 1098-C · 1098-E · 1098-F · 1098-Q · 1098-T · 1098-VLI · 1099-A · 1099-B · 1099-CAP · 1099-DIV · 1099-G · 1099-INT · 1099-K · 1099-LPS · 1099-LS · 1099-LTC · 1099-MISC · 1099-NEC · 1099-OID · 1099-PATR · 1099-Q · 1099-QA · 1099-R · 1099-S · 1099-SA · 1099-SB · 3921 · 3922 · 5498 · 5498-ESA · 5498-QA · 5498-SA · 5498-TA · W-2G · 1099-DA · Comparison table
Sources: IRS Publication 1099 (2026), General Instructions for Certain Information Returns, which replaced the separate General Instructions starting with tax year 2026; Instructions for Forms 1099-A and 1099-C (Rev. April 2025); Pub 1099 (2026) parts E and N; IRC 6050PIRC 6050PInternal Revenue Code, Cornell LII; Regulations 1.6050P-1. Threshold amounts are indexed for inflation from calendar year 2027; check IRS.gov/InflationAdjustment for the current year.