IRS tax forms are used for taxpayers and tax-exempt establishments to report financial information to the Internal Revenue Service (IRS) of the United States. 1099-A and 1099-C are the series of the information returns. Among the numerous variety of the form 1099, 1099-A is the Acquisition or Abandonment of Secured Property whereas 1099-C is the Cancellation of Debt.
What is 1099-A?
This form is used when you give up paying for a loan secured by property. This form is typically connected with foreclosures, short sales, or retrievals (including automobile repossessions).
What is 1099-C?
This form reports Cancellation of Debt Income (CODI). A lender is thought to file a 1099-C form if it “cancels” $600 or more in debt. It documents copy with the IRS and is required to send a copy to the taxpayer as well.
- On Form 1099-A, the lender reports the amount of the debt owed (principal only) and the fair market price of the secured property as of the date of the acquisition or abandonment of the property. On Form 1099-C, the lender reports the expanse of the canceled debt.
- The treatment of 1099-A varies affording to it its usage for personal or business purposes, but the treatment of 1099-C does not varies in any situation.
- The range of those can file form 1099-C is bigger than the range of those who can file 1099-A. in simple words we may say that the 1099-C form specifies things on a larger scale as confidant to the 1099-A form.
- In the form 1099-A, you are required to mention date of Lender’s Acquisition or Knowledge of Abandonment nevertheless in the form 1099-C you have to mention the date of the identifiable event.
- In the form 1099-C, there are many concessions revealed regarding the amounts and the group of people whereas in the form 1099-A there are no exceptions declared concerning the behavior.
- For the behavior of 1099-C, the record of the data for the last four years is compulsory, whereas for 1099-A no such limit is smears.