Form 1099-C Checklist — 2015 Tax Year
Purpose
Form 1099-C reports cancellation of debt of $600 or more resulting from an identifiable event. Creditors must file by February 29, 2016, for paper submissions or March 31, 2016, for electronic filing. Copy B must reach debtors by February 1, 2016, because January 31, 2016, falls on a Sunday. Discharged amounts are generally includible in debtor income unless bankruptcy, insolvency, or other statutory exclusions apply per Publication 4681.
Filing Steps for Creditor
Threshold and Eligibility Requirements
You must file Form 1099-C for each debtor when you cancel a debt of $600 or more during calendar year 2015. The $600 threshold applies uniformly to all debt cancellations regardless of the debtor's personal liability status. You must identify and document the appropriate identifiable event code for box 6 by selecting from codes A through I based on the actual circumstance occurring in 2015.
Required Form Completion Steps
- Complete box 1 by entering the date of the earliest identifiable event or, at your election, the actual discharge date if cancellation occurred before an identifiable event in calendar year 2015.
- Complete box 2 by reporting the total discharged debt amount in dollars, including only stated principal for lending transactions and showing any included interest separately in box 3.
- Complete box 3 only if you chose to include interest in box 2, reporting the interest portion separately as required when interest is included in canceled debt.
- Check the box 5 checkbox if the debtor was personally liable for repayment of the debt when the debt was created or when last modified.
- Complete box 6 by entering the appropriate identifiable event code:
- A for bankruptcy
- B for judicial relief, making the debt unenforceable
- C for statute of limitations expiration
- D for foreclosure election extinguishing debt
- E for probate proceedings
- F for creditor-debtor agreement
- G for policy to discontinue collection
- H for expiration of nonpayment testing period
- I for other actual discharge before an identifiable event
- Complete box 7 only if foreclosure or abandonment occurred in the same calendar year as the debt cancellation, reporting fair market value using gross foreclosure bid price for foreclosures or appraised value for abandonments.
Distribution and Filing Procedures
Furnish Copy B to each debtor no later than February 1, 2016, including the debtor's complete identification number in your records and truncating to show only the last four digits on Copy B per Privacy Act rules. File Copy A with the IRS by February 29, 2016, if filing on paper, or by March 31, 2016, if filing electronically through the FIRE System using Publication 1220 specifications.
Attach Form 1096 as the summary transmittal when filing paper Forms 1099-C for the 2015 tax year. Include your EIN, complete contact information, and aggregate totals of all forms filed on the Form 1096 transmittal.
2015 Year-Specific Regulatory Details
Universal Threshold Application
The $600 debt cancellation threshold applies to all reportable identifiable events during the 2015 tax year. You must file Form 1099-C regardless of whether the debtor must report the debt as income. Personal liability status does not alter the $600 minimum filing threshold, but must be indicated in box 5 when you file the form.
Box 5 Personal Liability Reporting
You must check box 5 if the debtor was personally liable for repayment when the debt was created or last modified. This checkbox directly affects the debtor's eligibility for exclusions under the insolvency exception per Publication 4681. The personal liability determination applies at the time of debt creation or the most recent modification before cancellation.
Identifiable Event Code H Requirements
Code H applies to 2015 filings when the creditor's reasonable collection efforts cease and the statutory nonpayment testing period expires within the calendar year. The testing period is 36 months ending on December 31, plus any time when collection activity was precluded by bankruptcy stay or similar legal bar. You must have engaged in significant bona fide collection activity during the 12 months ending December 31, and no facts or circumstances as of January 31 following the testing period indicate that the debt was not canceled.
Interest Reporting for Lending Transactions
You are not required to report interest on canceled debt arising from lending transactions. If you choose to report interest as part of the canceled debt in box 2, you must show the interest separately in box 3. This requirement applies uniformly to all lending transactions regardless of the debtor's personal liability status.
Recipient Statement Deadline
Copy B must reach the debtor by February 1, 2016, for the 2015 tax year because the standard January 31 deadline falls on a Sunday. No extensions are available for furnishing statements to recipients. You may use electronic delivery if the debtor consents and receives unambiguous written notification during 2015.
Coordination With Form 1099-A
You may file Form 1099-C alone if you cancel a debt of $600 or more in connection with the foreclosure or abandonment of secured property in the same calendar year. You will meet your Form 1099-A filing requirement by completing boxes 4, 5, and 7 on Form 1099-C. If you file both forms for the same debtor, do not complete boxes 4, 5, or 7 on Form 1099-C.
Recordkeeping Requirements
You must retain copies of filed Forms 1099-C or maintain the ability to reconstruct the data for at least four years from the due date of the returns. Keep all supporting documentation that establishes the identifiable event date, canceled amount, and debtor liability status for the same retention period.
Need Help With Your Tax Filing?
If you’re missing tax documents or want to ensure the numbers you enter match IRS records, we can help.
We offer:
- Full IRS transcript retrieval (Wage & Income + Account)
- Professional tax form review
- Preparation & filing support
- Tax relief options if you owe the IRS
Call now before filing: (888) 260-9441
Fast transcript pull available
This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
