File IRS Form 1099-C online

Form 1099-C reports the cancellation of debt by a creditor. This form is issued to taxpayers when a debt is canceled, forgiven, or discharged. It helps ensure taxpayers report canceled debt as income, as it may be taxable under IRS rules.

Creditors must file a 1099-C with the IRS for each debt that is canceled, forgiven, or discharged if the amount is $600 or more. Examples of when a 1099-C should be filed include:

• Cancellation of credit card debt
• Forgiveness of a mortgage loan
• Discharge of a student loan
• Debts settled for less than the full amount owed

Yes. You can e-file Form 1099-C through the IRS website or by mail. You may also use Avalara 1099 & W-9 to streamline the e-filing process and help prevent costly errors.

• Send copies to recipients by January 31.
• E-file with the IRS by March 31.

When these dates fall on a weekend or holiday, the deadline shifts to the next business day.

It depends. Some states require you to file Form 1099-C directly, especially if state income tax was withheld or if you’re not using the IRS Combined Federal/State Filing Program (CF/SF). Requirements, deadlines, and formats vary by state.

Form 1099-C requires detailed information about the canceled debt, including the amount of debt canceled, the date of cancellation, and the nature of the debt. This can involve more data collection and validation compared to simpler forms.