Instructions For Forms 1099-A And 1099-C - 2016
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62016
Department of the Treasury
Internal Revenue Service
Instructions for Forms
1099-A and 1099-C
Acquisition or Abandonment of Secured Property and Cancellation of Debt
Section references are to the Internal Revenue Code
not complete boxes 4, 5, and 7 on Form 1099-C. See the
unless otherwise noted.
instructions for Form 1099-C, later.
Future Developments
Property
For the latest information about developments related to
Property means any real property (such as a personal
Forms 1099-A and 1099-C and their instructions, such as
residence), any intangible property, and tangible personal
legislation enacted after they were published, go to
property except:
and
No reporting is required for tangible personal property
What's New
(such as a car) held only for personal use. However, you
must file Form 1099-A if the property is totally or partly
At the time these instructions went to print Proposed
held for use in a trade or business or for investment.
Regulations (REG-136676-13) were issued concerning
No reporting is required if the property securing the loan
the 36-month non-payment testing period. See,
is located outside the United States and the borrower has
for further developments.
furnished the lender a statement, under penalties of
Reminder
perjury, that the borrower is an exempt foreign person
(unless the lender knows that the statement is false).
In addition to these specific instructions, you should also
use the 2016 General Instructions for Certain Information
Who Must File
Returns. Those general instructions include information
In addition to the general rule specified above, the
about the following topics.
following rules apply.
Who must file (nominee/middleman).
When and where to file.
Multiple owners of a single loan. If there are multiple
Electronic reporting requirements.
owners of undivided interests in a single loan, such as in
Corrected and void returns.
pools, fixed investment trusts, or other similar
Statements to recipients.
arrangements, the trustee, record owner, or person acting
Taxpayer identification numbers.
in a similar capacity must file Form 1099-A on behalf of all
the owners of beneficial interests or participations. In this
Backup withholding.
case, only one form for each borrower must be filed on
Penalties.
behalf of all owners with respect to the loan. Similarly, for
Other general topics.
bond issues, only the trustee or similar person is required
You can get the general instructions from
to report.
form1099a
or
Governmental unit. A governmental unit, or any of its
subsidiary agencies, that lends money secured by
Specific Instructions for Form 1099-A
property must file Form 1099-A.
File Form 1099-A, Acquisition or Abandonment of
Subsequent holder. A subsequent holder of a loan is
Secured Property, for each borrower if you lend money in
treated as a lender and is required to report events
connection with your trade or business and, in full or
occurring after the loan is transferred to the new holder.
partial satisfaction of the debt, you acquire an interest in
property that is security for the debt, or you have reason to
Multiple lenders. If more than one person lends money
know that the property has been abandoned. You need
secured by property and one lender forecloses or
not be in the business of lending money to be subject to
otherwise acquires an interest in the property and the sale
this reporting requirement.
or other acquisition terminates, reduces, or otherwise
impairs the other lenders' security interests in the
Coordination With Form 1099-C
property, the other lenders must file Form 1099-A for each
If, in the same calendar year, you cancel a debt of $600 or
of their loans. For example, if a first trust holder forecloses
on a building, and the second trust holder knows or has
more in connection with a foreclosure or abandonment of
secured property, it is not necessary to file both Form
reason to know of such foreclosure, the second trust
holder must file Form 1099-A for the second trust even
1099-A and Form 1099-C, Cancellation of Debt, for the
same debtor. You may file Form 1099-C only. You will
though no part of the second trust was satisfied by the
proceeds of the foreclosure sale.
meet your Form 1099-A filing requirement for the debtor
by completing boxes 4, 5, and 7 on Form 1099-C.
However, if you file both Forms 1099-A and 1099-C, do
Sep 30, 2015
Cat. No. 27991U
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