1099 Forgiveness of Debt Instructions

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    • 1). Download and print Form 1040 from the Internal Revenue Service's website at IRS.gov or request a copy of Form 1040 from your tax preparer.

    • 2). Enter the amount contained in line 2 of Form 1099-C, "canceled debt," on line 21 of Form 1040.

    • 3). Submit your tax forms via mail or online as you normally do. You do not need to provide the Internal Revenue Service with a copy of Form 1099-C.

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