What is an IRS 1099-C?
An IRS 1099-C is a form that notifies a taxpayer that the creditor intends to “write off” the remaining portion of the unpaid balance on their taxes for that year. It is filed by the creditor with the IRS when a settlement is reached or when a creditor has determined that a debt will never be paid. The purpose of the IRS 1099-C is to alert the taxpayer that they may be liable to report the forgiven portion of the balance on their taxes.
