What is a 1099-C: Cancellation of Debt form?
A 1099-C form lets you know that a creditor is going to write off the remaining unpaid portion of your debt. An IRS 1099-C: Cancellation of Debt form is filed by a creditor to the IRS when a settlement agreement between a debtor and a creditor has been reached or when a creditor has determined that a debt will never be paid. If the debt is for $600 or more the creditor must send you, the debtor, a 1099-C in the mail by January 31st and to the IRS by February 28th of the tax year in which the debt was discharged.
