Wednesday, September 1, 2010

Form 1099-C Cancellation of Debt

Borrowers whose debt is reduced or eliminated receive a year end statement (Form 1099-C) from their lender. The lender is required to furnish this form to the borrower by January 31. By law, this form must show the amount of debt forgiven and the fair market value of any property given up through foreclosure.

Borrowers need to check the Form 1099-C carefully. Notify the lender immediately if any of the information shown is incorrect. Borrowers should pay particular attention to the amount of debt forgiven and the value listed for their home.

For additional information visit the IRS website
IRS Publication 4705 (2-2009)
Catalog number 51765 C

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