Client Alert
On October 15th, the IRS proposed a change to the regulations which would eliminate the requirement of a creditor to report cancellation of debt income on Form 1099-C after not receiving payment for 36 months. Under Section 6050P(a) of the Code, applicable entities that discharge the indebtedness of any person during any calendar year in an amount of $600 or more shall make a return of certain information, including the name and address and Tax Identification Number of the person whose indebtedness was discharged and the date of the discharge.