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Code H on the 1099C is used for "expiration of nonpayment testing period." Creditors use this code if you haven't made a payment on a debt in the last three years, and they haven't made a significant effort to collect in the past year.
Creditors have the advantage about when to report canceled income to the IRS.
Statutes of limitations vary by state and by type of debt, but creditors are not required to file a 1099-C during the time they can continue to try to collect on a debt.
The IRS advised you to look to form 982 because you may be able to claim insolvency and not actually pay tax on the forgiven debt.
For simple canceled debt, like from credit cards, you just check Box 1b, and at Line 2 fill in the amount of canceled debt reduced by your insolvency.
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