Instructions for Forms 1099-A and 1099-C (Rev. January 2022)

1 Instructions for Forms Department of the Treasury Internal Revenue Service 1099-A and 1099-C . (Rev. January 2022). Acquisition or Abandonment of Secured Property and Cancellation of Debt Section references are to the Internal Revenue Code unless otherwise noted. Specific Instructions for Form 1099-A . File Form 1099-A , Acquisition or Abandonment of Future Developments Secured Property, for each borrower if you lend money in For the latest information about developments related to connection with your trade or business and, in full or Forms 1099-A and 1099-C and their Instructions , such as partial satisfaction of the debt, you acquire an interest in legislation enacted after they were published, go to property that is security for the debt, or you have reason to and know that the property has been abandoned. You need not be in the business of lending money to be subject to What's New this reporting requirement. Continuous-use form and Instructions .

2 Form 1099-A , Form 1099-C , and these Instructions have been Coordination With Form 1099-C . converted from an annual revision to continuous use. Both If, in the same calendar year, you cancel a debt of $600 or the form and Instructions will be updated as needed. For more in connection with a foreclosure or abandonment of the most recent versions, go to and secured property, it is not necessary to file both Form 1099-A and Form 1099-C , Cancellation of Debt, for the same debtor. You may file Form 1099-C only. You will Reminders meet your Form 1099-A filing requirement for the debtor In addition to these specific Instructions , you should also by completing boxes 4, 5, and 7 on Form 1099-C . use the current General Instructions for Certain However, if you file both Forms 1099-A and 1099-C , do Information Returns. Those general Instructions include not complete boxes 4, 5, and 7 on Form 1099-C . See the information about the following topics. Specific Instructions for Form 1099-C , later.

3 Who must file. When and where to file. Property Electronic reporting. Property means any real property (such as a personal corrected and void returns. residence), any intangible property, and tangible personal Statements to recipients. property except the following. Taxpayer identification numbers (TINs). No reporting is required for tangible personal property Backup withholding. (such as a car) held only for personal use. However, you Penalties. must file Form 1099-A if the property is totally or partly Other general topics. held for use in a trade or business or for investment. You can get the general Instructions from General No reporting is required if the property securing the loan Instructions for Certain Information Returns at is located outside the United States and the borrower has 1099 GeneralInstructions or go to or furnished the lender a statement, under penalties of perjury, that the borrower is an exempt foreign person (unless the lender knows that the statement is false).

4 Online fillable Copies B and C. To ease statement furnishing requirements, Copies B and C have been made Who Must File fillable online in a PDF format available at Form1099A and You can complete In addition to the general rule specified above, the these copies online for furnishing statements to recipients following rules apply. and for retaining in your own files. Multiple owners of a single loan. If there are multiple Guidance for creditors regarding discharged student owners of undivided interests in a single loan, such as in loans under section 6050P. Rev. Proc. 2020-11 pools, fixed investment trusts, or other similar establishes a safe harbor extending relief under Rev. arrangements, the trustee, record owner, or person acting Proc. 2015-57; Rev. Proc. 2017-24, 2017-7 916; in a similar capacity must file Form 1099-A on behalf of all and Rev. Proc. 2018-39. See Rev. Proc. 2020-11, the owners of beneficial interests or participations. In this available at #REV- case, only one form for each borrower must be filed on PROC-2020-11, to determine whether a creditor or behalf of all owners with respect to the loan.

5 Similarly, for taxpayer qualifies for relief. See Student loan bond issues, only the trustee or similar person is required indebtedness under Exceptions, later. to report. Nov 03, 2021 Cat. No. 27991U. Governmental unit. A governmental unit, or any of its truncated on any form. See part J in the current General subsidiary agencies, that lends money secured by Instructions for Certain Information Returns. property must file Form 1099-A . Account Number Subsequent holder. A subsequent holder of a loan is The account number is required if you have multiple treated as a lender and is required to report events accounts for a borrower for whom you are filing more than occurring after the loan is transferred to the new holder. one Form 1099-A . Additionally, the IRS encourages you Multiple lenders. If more than one person lends money to designate an account number for all Forms 1099-A that secured by property and one lender forecloses or you file. See part L in the current General Instructions for otherwise acquires an interest in the property and the sale Certain Information Returns.

6 Or other acquisition terminates, reduces, or otherwise impairs the other lenders' security interests in the Box 1. Date of Lender's Acquisition or property, the other lenders must file Form 1099-A for each Knowledge of Abandonment of their loans. For an acquisition, enter the date you acquired the For example, if a first trust holder forecloses on a secured property. An interest in the property is generally building, and the second trust holder knows or has reason acquired on the earlier of the date title is transferred to the to know of such foreclosure, the second trust holder must lender or the date possession and the burdens and file Form 1099-A for the second trust even though no part benefits of ownership are transferred to the lender. If an of the second trust was satisfied by the proceeds of the objection period is provided by law, use the date the foreclosure sale. objection period expires. If you purchase the property at a sale held to satisfy the debt, such as at a foreclosure or When To File execution sale, use the later of the date of sale or the date File Form 1099-A in the year following the calendar year in the borrower's right of redemption, if any, expires.

7 Which you acquire an interest in the property or first know For an abandonment, enter the date you knew or had or have reason to know that it has been abandoned. reason to know that the property was abandoned unless you expect to commence a foreclosure, execution, or Abandonment similar action within 3 months, as explained earlier. If a An abandonment occurs when the objective facts and third party purchases the property at a foreclosure, circumstances indicate that the borrower intended to and execution, or similar sale, the property is treated as has permanently discarded the property from use. You abandoned, and you have reason to know of its have reason to know of an abandonment based on all abandonment on the date of sale. the facts and circumstances concerning the status of the property. You will be deemed to know all the information Box 2. Balance of Principal Outstanding that would have been discovered through a reasonable Enter the balance of the debt outstanding at the time the inquiry when, in the ordinary course of business, you interest in the property was acquired or on the date you become aware or should become aware of circumstances first knew or had reason to know that the property was indicating that the property has been abandoned.

8 If you abandoned. Include only unpaid principal on the original expect to commence a foreclosure, execution, or similar debt. Do not include accrued interest or foreclosure costs. sale within 3 months of the date you had reason to know that the property was abandoned, reporting is required as Box 3. Reserved for Future Use of the date you acquire an interest in the property or a third party purchases the property at such sale. If you Box 4. Fair Market Value (FMV) of Property expect to but do not commence such action within 3 For a foreclosure, execution, or similar sale, enter the months, the reporting requirement arises at the end of the FMV of the property. See Temporary Regulations section 3-month period. , Q/A-32. Generally, the gross foreclosure bid price is considered to be the FMV. If an abandonment or Statements to Borrowers voluntary conveyance to the lender in lieu of foreclosure If you are required to file Form 1099-A , you must provide a occurred and you placed an X in the checkbox in box 5, statement to the borrower.

9 Furnish a copy of Form 1099-A enter the appraised value of the property. Otherwise, or an acceptable substitute statement to each borrower. make no entry in this box. For more information about the requirement to furnish a statement to the borrower, see part M in the current Box 5. Was Borrower Personally Liable for General Instructions for Certain Information Returns. Repayment of the Debt Truncating borrower's TIN on statements. Pursuant to If the borrower was personally liable for repayment of the Regulations section , all filers of Form 1099-A debt at the time the debt was created or, if modified, at the may truncate a borrower's TIN (social security number time of the last modification, enter an X in the checkbox. (SSN), individual taxpayer identification number (ITIN), adoption taxpayer identification number (ATIN), or Box 6. Description of Property employer identification number (EIN)) on payee Enter a general description of the property.

10 For real statements. Truncation is not allowed on any documents property, you must generally enter the address of the the filer files with the IRS. A lender's TIN may not be property, or, if the address does not sufficiently identify the property, enter the section, lot, and block. -2- Instructions for Forms 1099-A and 1099-C (Rev. 01-2022). For personal property, enter the applicable type, make, 2. A credit union. and model. For example, describe a car as Car 2017 3. Any of the following, its successor, or subunit of one Honda Accord. Use a category such as Office of the following. Equipment to describe more than one piece of personal a. Federal Deposit Insurance Corporation. property, such as six desks and seven computers. Enter CCC for crops forfeited on Commodity Credit b. National Credit Union Administration. Corporation loans. c. Any other federal executive agency, including government corporations. Specific Instructions for Form 1099-C d.