Form 1099-C is used by lenders whom you canceled $600 or more of a debt owed to you in the same calendar year as 1099-A. You do not need to file both a 1099-A and 1099-C. Fill out boxes 4, 5, and 7 on the 1099-A to meet your filing requirements. However, if you do file both a 1099-A and 1099-C, do not fill out boxes 4, 5, and 7 on Form 1099-C.
When to File Form 1099-C?
You need to file a 1099-C if you:
- Are a domestic bank, trust company, credit union, or other financial institution
- Are a federal executive agency, military department, or UPS
- Need supervision and examination by a federal or state agency due to a subsidiary relationship with a financial institution
For detailed information, visit the IRS.
Who Must File 1099-C Form?
- If there are multiple owners of an undivided interest loan, the trustee or record owner must file Form 1099-A on everyone’s behalf. One form for each borrower will be filed.
- A government unit, or any subsidiary agencies, that lends money secured by the property must file 1099-A
- A subsequent owner of a loan is treated as a lender. This means that they are required to report events occurring after the loan is transferred to the new holder.
- If more than one person lends money secured by property and one lender forecloses or otherwise acquires an interest in the property and the sale or other acquisition terminates, reduces, or otherwise impairs the other lenders’ security interests in the property, the other lenders must file Form 1099-A for each of their loans.
1099-C Deadlines For The Year 2020
The following are the due dates for each filing type. Forms must be transmitted to the IRS before the deadline.
- Recipient copy > January 31
- IRS eFiling > March 31
- IRS Paper filing > February 28
If a due date falls on a weekend or holiday, it will be due the next business day.