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- 1). File Form 1099-C, if you are required to file the form, for the year in which an identifiable event occurs, such as a discharge in bankruptcy for a business or investment debt. Do not further report, even if a second identifiable event occurs, on the same debt.
- 2). Do not report a debt that is discharged in bankruptcy unless you know from the information included in your books and records the debt was incurred for business or investment purposes. Report a debt discharged in bankruptcy, if required, in the later of the year in which the amount of the debt being discharged can first be determined or the year in which the debt is discharged in bankruptcy. Do not include interest or non-principal amounts, including penalties, fines, fees and administrative costs on the form.
- 3). Provide your telephone number in the creditor's information box. Provide a telephone number which is a central number for all canceled debts and that will ensure the debtor is connected with the correct department. File the form, if required, for debts of $600 or more. Complete the rest of the boxes on the form, as directed. Include an account number, especially if the debtor has more than one account with your agency. Check Box 6 to indicate you are reporting a debt discharged in bankruptcy. Send a copy of the 1099-C to the debtor.
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