We're a municipal government and made deferred loans to homeowners. One homeowner died 3 years ago and the property was sold; we weren't notified. If we write off the debt, do we need to report it on a 1099-C?


As a municipality such as a city, county or town, you are not required to submit a 1099-C or a 1099-MISC or any other form to the IRS to report a debt write-off, according to Miss Tennett (#10013007512) at the IRS help line. Form 1099-C is required only for federal government agencies, banking institutions and credit unions.

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