No Debt Payments for 36 Months No Longer Triggers Debt Cancellation Form 1099-C


Final regulations remove the requirement that certain financial institutions and governmental agencies issue a Form 1099-C, Cancellation of Debt, when a debtor fails to make a payment for 36 months. Certain financial institutions and governmental agencies are required to file with the Internal Revenue Service and furnish to the debtor Form 1099-C, Cancellation of Debt, if, during a calendar year, any one of eight identifiable events discharging a debt of $600 or more occurs. Form 1099-C contains information identifying the debtor, the creditor, the amount of the debt discharged, the date of the identifiable event causing the discharge, and certain other information.