Laser 1099 C, Federal Copy A

Laser 1099 C, Federal Copy A

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Paper Filing Due Date: To Recipient January 31st.

Use to Report: Cancellation of a debt owed to a financial institution, the Federal Government, a credit union, FDIC, a military department, the U.S. Postal Service or any organization having a significant trade or business of lending money.

When a creditor cancels a debt without seeking any compensation in return, the taxman wants his piece of the cake. The rules state that in the event of a cancellation of a debt, the amount of the debt shall be treated as the debtor’s income and such income is to be reported to the IRS in 1099-C Tax Form Copy A. Copy B is sent to the debtor for information and inclusion in his or her income for the year.

Amounts to report: $600 or more. 

Don't forget the compatible envelopes: TF22222