1099-C - Overview

File Form 1099-C, Cancellation of Debt, for each debtor for whom you canceled a debt owed to you of $600 or more if:

• You are an entity described under the Who Must File section below; and
• An identifiable event has occurred. It does not matter whether the actual cancellation is on or before the date of the identifiable event.

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).
2. A credit union.
3. Any of the following, its successor, or subunit of one of the following.
1. Federal Deposit Insurance Corporation.
2. National Credit Union Administration.
3. Any other federal executive agency, including government corporations.
4. Any military department.
5. U.S. Postal Service.
6. 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:
1. A department,
2. An agency,
3. A court or court administrative office, or
4. 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.

Deadlines

See below for the deadlines relevant to Form 1099-C.

• January 31 is the last day to furnish recipient copies.
• March 31 is the last day to submit filings electronically to the IRS.

If a deadline falls on a weekend or holiday, it will be extended to the next business day. A 30-day extension is generally available for both of the deadlines above.

Resources

• Form 1099-C – IRS Form & Instructions

• Standard Account Owner/Account - CSV Ingestion Template Guide
• 1099-C - Form Data CSV Ingestion Template Guide

Data Requirements

See below for all of the required data elements for completing Form 1099-C reporting.

Filing Entity

The legal entity responsible for the issuing forms will be the filing entity. The information listed below must be submitted through the Taxbit Dashboard.

For more information on Filer setup, please refer to this guide: Filer Setup

Please note: If there are multiple filers, please ensure that you are using the correct filer ID for the associated account(s).

Account Owner / Account

For ingestion purposes, the only data point required to create/update an Account Owner is the Account ID. This allows you to add all of your users to the Dashboard, even while you may still be collecting additional information. There will be reports available in the Dashboard to let you know if something is missing for an Account that is eligible for a tax form.

For more information on formatting the Account Owner/Account CSV templates, please refer to this guide: Standard Account Owner/Account - CSV Ingestion Template Guide

The following table, however, summarizes the required fields needed to complete the Form 1099-C.

Note that there are other fields on the Account Owner / Account model that are not listed here, as they are not required for 1099-C reporting.

Form Data

The following data points must be provided for Form Data ingestion. Note that there should typically be a single row for each Account, per identifiable event, in the template.