Do you know when to File 1099 A and 1099 C? It is an exhausting situation when you don’t understand the exact differences between 1099 A and 1099 C filing. Many sellers have no idea which forms need to get from the lenders. Here, we have mainly concentrated on the difference between these forms and their reporting process to the IRS. Clear your confusion by reading the entire article.
Table of Contents
- Main Difference between IRS 1099 A and 1099 C
- Exceptions to File Form C
- IRS Form A e-Filing Services
Main Difference between IRS 1099 A and 1099 C
The main differences between Online 1099 A & 1099 C are provided in the below table. Have a look at the below table now.
| 1099 A Form | 1099 C Form |
| 1. It is used to report Acquisition or Abandonment of Secured Property | 1. It is used to report the Cancellation of Debt |
| 2. The seller will get a 1099-A Form to report the transfer of the property. | 2. The seller will get this form to report the Cancellation of Debt from a deed instead of foreclosure or a short sale. |
| 3. Filing Requirement: If you lend money for your trade or business, then you get an interest in property then that is the cause for the property being abandoned or for the debt. | 3. Filing Requirement: If you cancel the debt of $600 or more for a debtor.
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| 4. Due Date: You must send a copy of the IRS 1099 A Form by February 1, 2023. Send 1099 A Copy to the IRS by March 1, 2023 (paper filing), or by March 31, 2023 (electronic filing). | 4. Due Date: You must send a copy of the IRS 1099 C Form by February 1, 2023. Send 1099 C Tax Form Copy to the IRS by March 1, 2023 (paper filing), or by March 31, 2023 (electronic filing).
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| 5. Penalty: The penalty is $270 per form for late filing.
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5. Penalty: The penalty is $270 per form for late filing.
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| 6. Property – Any real property (along with personal residence), any tangible personal property (not including 100% personal use property such as a car or any vehicle), and any intangible property.
Abandonment – occurs when the borrower is supposed to and has permanently discarded the property from use. |
6. Cancellation –
1. When the limitations for collecting the debt expire. 2. A failure of indebtedness along with an agreement between the debtor and the creditor to cancel the debt at less than full consideration. 3. A failure of indebtedness as defined by the policy of the creditor to cancel the debt and discontinue collection activity. 4. A discharge in bankruptcy 5. Debt of unenforceable in a receivership, court proceeding, or similar foreclosure. 6. The end of the creditor’s right to collect by law. 7. Due to probate or similar proceeding.
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Exceptions to File Form C
You are exempt from the IRS Form 1099 C Online Filing for the below reasons.
- When reporting of interest is not required.
- When reporting non-principal amounts are not required.
- Also, when cancellation of non-investment or non-business debts in bankruptcy occurs.
- When the transfer of debt occurs between related debtors are not a cancellation.
- When a foreign branch cancels a debt of a foreign debtor.
- Don’t file 1099 C for a guarantor.
- When one debtor releases on a debt where other debtors are fully liable is not a cancellation.
- Student loan indebtedness if it happens due to permanent and total disability or student’s death.
- When the sellers financing the sale of nonfinancial goods or services are not in the business of lending money.
IRS Form A e-Filing Services
Form1099online.com provides 1099 A Efiling services at an affordable price. Friendly customer support will let you finish the quick and accurate filing. Without any delay, quickly start 1099 A Online Filing Now.