taxes96786
Level 9

When a 1099c is issued it doesn't automatically cancel the actual debt. The issuer determines whether the debt is cancelled or whether it is still owed. The 1099c indicates that the issuer, for reason, has determined that the debt was uncollectable at the time the 1099c was issued. If the issuer receives payment for the debt, after that time, then it is income to the issuer.

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