Instructions For Forms 1099-A And 1099-C - 2016 (Page 6 of 6) in pdf

Box 3. Interest if Included in Box 2

Part J for specific procedures to complete Form

1099-C for debtors in bankruptcy.

Enter any interest you included in the canceled debt in

box 2. You are not required to report interest in box 2. But

Truncating Debtor's identification number on payee

if you do, you must also report it in box 3.

statements. Pursuant to Treasury Regulations section

301.6109-4, all filers of Form 1099-C may truncate a

Box 4. Debt Description

debtor's identification number (social security number

Enter a description of the origin of the debt, such as

(SSN), individual taxpayer identification number (ITIN),

student loan, mortgage, or credit card expenditure. Be as

adoption taxpayer identification number (ATIN), or

specific as possible. If you are filing a combined Form

employer identification number (EIN)) on payee

1099-C and 1099-A, include a description of the property.

statements. Truncation is not allowed on any documents

the filer files with the IRS. A creditor's identification

Box 5. Check Here if the Debtor was Personally

number may not be truncated on any form. See part J in

Liable for Repayment of the Debt

the 2016 General Instructions for Certain Information

Returns.

If the debtor was personally liable for repayment of the

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

Account Number

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

The account number is required if you have multiple

Box 6. Identifiable Event Code

accounts for a debtor for whom you are filing more than

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

Enter the appropriate code to report the nature of the

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

identifiable event. For more information about the code to

you file. See part L in the 2016 General Instructions for

use when reporting each identifiable event, see When Is a

Certain Information Returns.

Debt Canceled , earlier, and Regulations section

1.6050P-1(b)(2). Also see Pub. 4681.

Box 1. Date of Identifiable Event

Box 7. Fair Market Value (FMV) of Property

Enter the date of the identifiable event. See When Is a

Debt Canceled, earlier. However, if you actually cancel a

FMV should include the appraised value of the

debt before an identifiable event and you choose to report

property if the property is sold in a short sale.

TIP

that cancellation, enter the date that you actually canceled

the debt.

If you are filing a combined Form 1099-C and 1099-A for a

foreclosure, execution, or similar sale, enter the FMV of

Box 2. Amount of Debt Discharged

the property. Generally, the gross foreclosure bid price is

Enter the amount of the canceled debt. See Debt Defined

considered to be the FMV. If an abandonment or voluntary

and Exceptions, earlier. The amount of the canceled debt

conveyance to the lender in lieu of foreclosure occurred,

cannot be greater than the total debt less any amount the

enter the appraised value of the property.

lender receives in satisfaction of the debt by means of a

settlement agreement, foreclosure sale, a short sale that

partially satisfied the debt, etc.

-6-

Instructions for Forms 1099-A and 1099-C (2016)

Instructions For Forms 1099-A And 1099-C - 2016 Page 6

Related Articles

Related forms

Related Categories