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Lev
Lev, Tax Advisor
Category: Tax
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Experience:  Taxes, Immigration, Labor Relations
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I have been told by Dept. of Ed that I will not receive a

Customer Question

I have been told by Dept. of Ed that I will not receive a 1099-C this month for my 2015 approved TPD discharge. They are now sending them out after my 3 yr monitoring period. I realize they did this before 2010 but believe that was changed in 2013? I am not sure what the heck I am to do? Report it in TY 2015 with numbers I have (no interest?) and pray that in 2019 they send me my 1099-C with the same numbers?! What cancellation date (year) are they now using? Did I miss something new? Thanks!
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

If you receive 1099C form for 2015 - that is an indication that your debt was cancelled in 2015 and the cancellation date is reported on that form.
The issue is that when the debt is cancelled - form 1099C MUST be issued.

If that information is NOT correct - you need to discuss that with the sender.

Customer: replied 1 year ago.
I was told I won't receive the 1099 C until 2019. I was approved for discharge August 2015. Since Dept of Ed is my servicer and they told me there will not be a 1099-c until after my monitoring period, how do I force them to send me one? I thought maybe it had changed back to pre 2010 laws again. So frustrating.
Expert:  Lev replied 1 year ago.

I am sorry for your situation...

That is not something the lender (or a loan servicer as in your situation) may decide...

If the debt is forgiven - the form 1099C is required by the law.

However - we need to be clear if the debt is forgiven or not?

If the debt is NOT forgiven yet 0- but based on some conditions will be forgiven in 2019 - that is different situation...

I would suggest to contact the administrator of your loan and verify the fact of forgiveness.
See instructions - page 3 for filing requirements

https://www.irs.gov/pub/irs-pdf/i1099ac.pdf

When To File
Generally, file Form 1099-C for the year in which an identifiable event occurs. See Exceptions, later. If you cancel a debt before an identifiable event occurs, you may choose to file Form 1099-C for the year of cancellation. No further reporting is required even if a later identifiable event occurs with respect to an amount previously reported. Also, you are not required to file an additional or corrected Form 1099-C if you receive payment on a prior year debt.
When Is a Debt Canceled
A debt is deemed canceled on the date an identifiable event occurs or, if earlier, the date of the actual discharge if you choose to file Form 1099-C for the year of cancellation.

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