Form 1099-C Instructions for the 2023 Tax Year

1. Creditor and Debtor information

Enter the following information of the Creditor in form 1099-C

• Name
• TIN
• Street address, city or town, state or province, country
• ZIP or foreign postal code
• Telephone number

Enter the following information of the Debtor in form 1099-C

• Name
• TIN
• Address

2. Boxes for debt information

• Box 1 - Date of the identifiable event

  In this box, enter the date of the identifiable event. However, if you cancel a debt before an identifiable event and you choose to report that cancellation, enter the date that you canceled the debt.

• Box 2 - Amount of debt discharged

  In this box, enter the amount of the canceled debt.

  Note -The amount of the canceled debt cannot be greater than the total debt less any amount the lender receives in satisfaction of the debt by means of a settlement agreement, foreclosure sale, a short sale that partially satisfied the debt, etc.

• Box 3 - Interest, if included in box 2

  Enter any interest you included in the canceled debt in Box 2 of 1099-c.

  However, you are not required to report interest in box 2. But if you do, you must also report it in box 3.

• Box 4 - Debt description

  Describe the origin of the debt in this box, such as student loan, mortgage, or credit card expenditure. Be as specific as possible.

  If you are filing a combined Form 1099-C and 1099-A, include a description of the property.

• Box 5 - Check Here if the Debtor Was Personally Liable for Repayment of the Debt

  Check box 5 with an “X” If the debtor was personally liable for repayment of the debt at the time the debt was created or, if modified, at the time of the last modification.

• Box 6 - Identifiable event code

  In this box, enter the appropriate code to report the nature of the identifiable event.

• Box 7 - Fair market value of property

  If you are filing a combined Form 1099-C and 1099-A for a foreclosure, execution, or similar sale, enter the FMV of the property. Generally, the gross foreclosure bid price is considered to be the FMV. However, if an abandonment or voluntary conveyance to the lender in lieu of foreclosure occurred, enter the property’s appraised value.