Yes, you do need to include a copy of the Form 1099-C in your amendment to the IRS. I will suggest you to make a copy to send to the IRS and keep the original one for your own record.
If your state tax return does not show any changes, you do not need to amend or submit amended state tax return.
In most situations, if you receive a Form 1099-C from a lender after negotiating a debt cancellation with them, you'll have to report to the Internal Revenue Service as taxable income. Certain exceptions do apply. According to the Mortgage Forgiveness Debt Relief Act in 2007, from 2007 to 2020, you can exclude up to $2 million in forgiven mortgage debt if you were married and filing jointly—up to $1 million for other filing statuses. Due to Covid, the CAA extends the exclusion of cancelled qualified mortgage debt from income for tax years 2021 through 2025. For more information, click here: Cancellation of debt
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