Instructions For Forms 1099-A And 1099-C - 2017 (Page 2 of 6) in pdf

Abandonment

you expect to commence a foreclosure, execution, or

similar action within 3 months, as explained earlier. If a

An abandonment occurs when the objective facts and

third party purchases the property at a foreclosure,

circumstances indicate that the borrower intended to and

execution, or similar sale, the property is treated as

has permanently discarded the property from use. You

abandoned, and you have reason to know of its

have “reason to know” of an abandonment based on all

abandonment on the date of sale.

the facts and circumstances concerning the status of the

property. You will be deemed to know all the information

Box 2. Balance of Principal Outstanding

that would have been discovered through a reasonable

Enter the balance of the debt outstanding at the time the

inquiry when, in the ordinary course of business, you

interest in the property was acquired or on the date you

become aware or should become aware of circumstances

first knew or had reason to know that the property was

indicating that the property has been abandoned. If you

abandoned. Include only unpaid principal on the original

expect to commence a foreclosure, execution, or similar

debt. Do not include accrued interest or foreclosure costs.

sale within 3 months of the date you had reason to know

that the property was abandoned, reporting is required as

Box 3. Reserved

of the date you acquire an interest in the property or a

third party purchases the property at such sale. If you

Box 4. Fair Market Value (FMV) of Property

expect to but do not commence such action within 3

For a foreclosure, execution, or similar sale, enter the

months, the reporting requirement arises at the end of the

FMV of the property. See Temporary Regulations section

3-month period.

1.6050J-1T, Q/A-32. Generally, the gross foreclosure bid

Statements to Borrowers

price is considered to be the FMV. If an abandonment or

voluntary conveyance to the lender in lieu of foreclosure

If you are required to file Form 1099-A, you must provide a

occurred and you placed an “X” in the checkbox in box 5,

statement to the borrower. Furnish a copy of Form 1099-A

enter the appraised value of the property. Otherwise,

or an acceptable substitute statement to each borrower.

make no entry in this box.

For more information about the requirement to furnish a

statement to the borrower, see part M in the 2017 General

Box 5. Was Borrower Personally Liable for

Instructions for Certain Information Returns.

Repayment of the Debt

Truncating borrower's taxpayer identification

If the borrower was personally liable for repayment of the

number onstatements. Pursuant to Treasury

debt at the time the debt was created or, if modified, at the

Regulations section 301.6109-4, all filers of Form 1099-A

time of the last modification, enter an “X” in the checkbox.

may truncate a borrower's taxpayer identification number

(social security number (SSN), individual taxpayer

Box 6. Description of Property

identification number (ITIN), adoption taxpayer

Enter a general description of the property. For real

identification number (ATIN), or employer identification

property, generally you must enter the address of the

number (EIN)) on payee statements. Truncation is not

property, or, if the address does not sufficiently identify

allowed on any documents the filer files with the IRS. A

the property, enter the section, lot, and block.

lender's taxpayer identification number may not be

truncated on any form. See part J in the 2017 General

For personal property, enter the applicable type, make,

Instructions for Certain Information Returns.

and model. For example, describe a car as “Car—2013

Honda Accord.” Use a category such as “Office

Account Number

Equipment” to describe more than one piece of personal

The account number is required if you have multiple

property, such as six desks and seven computers. Enter

accounts for a borrower for whom you are filing more than

“CCC” for crops forfeited on Commodity Credit

one Form 1099-A. Additionally, the IRS encourages you

Corporation loans.

to designate an account number for all Forms 1099-A that

you file. See part L in the 2017 General Instructions for

Specific Instructions for Form 1099-C

Certain Information Returns.

The creditor's phone number must be provided in

Box 1. Date of Lender's Acquisition or

the creditor's information box. It should be a

Knowledge of Abandonment

central number for all canceled debts at which a

CAUTION

For an acquisition, enter the date you acquired the

person may be reached who will ensure the debtor is

secured property. An interest in the property generally is

connected with the correct department.

acquired on the earlier of the date title is transferred to the

Do not file Form 1099-C when fraudulent debt is

lender or the date possession and the burdens and

canceled due to identity theft. Form 1099-C is to

benefits of ownership are transferred to the lender. If an

be used only for cancellations of debts for which

objection period is provided by law, use the date the

CAUTION

the debtor actually incurred the underlying debt.

objection period expires. If you purchase the property at a

sale held to satisfy the debt, such as at a foreclosure or

File Form 1099-C, Cancellation of Debt, for each

execution sale, use the later of the date of sale or the date

debtor for whom you canceled a debt owed to you of $600

the borrower's right of redemption, if any, expires.

or more if:

For an abandonment, enter the date you knew or had

1. You are an entity described under Who Must File

reason to know that the property was abandoned unless

below, and

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Instructions for Forms 1099-A and 1099-C (2017)

Instructions For Forms 1099-A And 1099-C - 2017 Page 2

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