How to E-file Form 1099-C Online for 2023 with TaxBandits?
What Information is Required to E-file Form 1099-C Online?
- 1. Creditor’s details: Name, TIN, Address
- 2. Debtor’s details: Name, TIN, Address
- 3. Date of Identifiable Event
- 4. Amount of canceled debt
- 5. Interest included in the canceled debt
- 6. Debt Description
- 7. Identifiable event code
- 8. Fair market value of property
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Frequently Asked Questions
What is the IRS Form 1099-C?
IRS Form 1099-C is used by creditors (including domestic bank, a trust company, a credit union) to report the cancellation of $600 or more in debt owed to the debtors such as an individual, corporation, partnership, trust, estate, association or company.
A 1099-C Form must be filed regardless of whether the debtor chooses to report the debt as taxable income.
The copy of Form 1099-C must be furnished to the debtor.
What are the copies in Form 1099-C?
There are 3 copies in Form 1099-C to be completed by the Creditors:
- Copy A - To be filed with the IRS
- Copy B - To be furnished with the debtor
- Copy C - For Creditor Records
When is the deadline to file Form 1099-C?
Form 1099-C must be furnished to recipients by January 31, 2024 and e-filed with the IRS by April 1, 2024. The 1099-C paper filing deadline is February 28, 2024.
Visit https://www.taxbandits.com/1099-forms/1099-c-deadline/ to know more about 1099-C Due dates.
How to fill out Form 1099-C?
Form 1099-C comprised of 7 Boxes. You have to enter the required information in each box.
Boxes for Creditor Information
1. Enter your information like Name, Address, City or Town, State, Postal Code, and Phone Number
2. Enter your TIN (EIN/SSN)
Boxes for Debitor Information
1. Enter your debtor TIN
2. Enter your debtor Name
3. Enter your debtor Address
4. Enter your debtor City, State, Country, and ZIP code
Boxes for debt information
Box 1: Date of Identifiable Event
Box 2: Amount of Debt Discharged
Box 3: Interest, if included in box 2
Box 4: Debt description
Box 5: Check here if the debtor was personally liable for repayment of the debt
Box 6: Identifiable event code
Box 7: Fair market value of property
Want to know how to complete Form 1099-C? Here are the step by step Form 1099-C Instructions.
What are the IRS Late Filing Penalties of Form 1099-C?
The IRS will issue penalties under section 6721 for filing 1099-C Forms with the following reasons:
- Not filing by the due date
- Not filing a proper 1099 paper form that's machine-readable
- Using the form for the wrong year
- Not using the right copy of Form 1099-C
- Filing with Incorrect or missing TIN
- Filing with the incorrect information
If filing a 1099 C Form that is late for 30 days or less, the penalty is $60 per form and increases to $120 per form if more than 30 days late. Learn More about 1099-C penalties.
Helpful Resource for Form 1099-C
What is Form 1099-C
Form 1099-C also known as Cancellation of Debt is an IRS tax form used to report debts of over $600 that were forgiven or canceled during the tax year.
The form 1099-C is used to reportCancellation of Debt, Step by step breakdown of everything you need to know before filing Form 1099-C for the 2023 tax year.