Creating Form 1099-C
- Click on the Payer List button.
- Double click on the payer name.
- Highlight the recipient to add the form to.
- Click on the Add Form button.
- Choose 1099-C from the Form Type drop down menu.
- Fill in the necessary fields on the form:
- Corrected: Check this box if it applies.
- Date of identifiable event: Enter the date of identifiable event.
- Amount of debt discharged: Enter the amount of the canceled debt.
- Interest if included in box 2: Enter any interest included in the canceled debt amount of box 2.
- Debt description: Enter a description of the origin of the debt.
- Check here if the debtor was personally liable for repayment of the debt: Check this box if it applies.
- Identifiable event code: Enter the appropriate code to report the nature of the identifiable event.
- A – Bankruptcy.
- B - Other judicial debt relief.
- C - Statute of limitations / deficiency period expired.
- D - Foreclosure election.
- E - Debt relief from probate or similar proceeding.
- F - By agreement.
- G - Decision or policy to discontinue collection.
- H – Other actual discharge before identifiable event.
- Fair market value of property: Enter the fair market value.
- Account Number: A number assigned to recipient by the payer. This field is optional except for the following cases:
- The recipient has multiple returns for the same return type.
- The returns are filed using the E-file Center.
- Click Save.