The IRS is seeking public comment regarding guidance for entities that discharge indebtedness and may be required to furnish 1099-C returns.
Section 6050P(b) of the Tax Code says that an applicable entity must issue an information return if $600 or more of indebtedness is discharged. Treasury regulation §1.6050P-1(b)(2) also lists eight identifiable events that trigger a reporting obligation, including the expiration of a non-payment testing period that results when a creditor does not receive payment or engage in bona fide collection activity for specified periods of time.
Acknowledging in its
The Treasury and the service are particularly interested in any comments regarding:
- Whether Treas. Reg. § 1.6050P-1(b)(2)(i) should be amended to remove the non-payment testing period as an identifiable event;
- Whether the removal of the non-payment testing period would increase or decrease the burden on creditors and taxpayers;
- If the non-payment testing period is removed, whether additional rules are necessary to address continuing collection activity; and,
- If the non-payment testing period is retained, how it should be modified to improve its usefulness and alleviate confusion.
Written comments should be sent to CC:PA:LPD:PR (Notice 2012-65), Room 5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, D.C., 20044. Comments may be hand delivered between 8:00 a.m. and 4:00 p.m. Monday to Friday to CC:PA:LPD:PR (Notice 2012-65), Courier's Desk, Internal Revenue Service, 1111 Constitution Avenue, NW, Washington, D.C.
Comments may also be emailed to
All comments will be available for public inspection and copying and must be received by Feb. 11, 2013.
