Sending a 1099-c to a debtor

Arutkow · ‎January 25, 2020

I am filling out a 1099-C to send to a debtor. I am cancelling just over $5,000 in debt owed to me. On box 7 of the form 1099-C, it states "Fair market value". Would that be the full loan amount of $5,000? Since I didn't have any property to take back and sell, there was nothing of value ever given to me. I never received anything back from the loan.

Anonymous · ‎January 25, 2020

are you supposed to file? see page 3 of this link

https://www.irs.gov/pub/irs-pdf/i1099ac.pdf

Arutkow · ‎January 25, 2020

In order for me to write-off the debt as noncollectable, I have to use that form. It's just not the clearest instructions, and I dread having to call the IRS to try to get an answer.

Sending a 1099-c to a debtor

Deductions & credits

Deductions & credits