CUNA Regulatory Comment Call

June 2, 2008

EXECUTIVE SUMMARY

• As part of its continuing review of its collection of information, the Internal Revenue Service (IRS) is reviewing and soliciting comments on Form 1099-C, Cancellation of Debt (Form 1099- C).
• No changes are being made to the form at this time.
• Credit unions and other financial institutions use Form 1099-C to report the cancellation or forgiveness of a debt of $600 or more.
• Form 1099-C is used to verify that a debtor has included the proper amount of canceled debt in income on his or her income tax return.
• In addition to the credit union’s information, Form 1099-C asks for the debtor’s name, address and taxpayer identification number, the amount of cancelled debt, interest, date of cancellation and fair market value of property. For a copy of the form, click here.
• Comments are due to the IRS by August 18, 2008. Please submit your comments to CUNA by August 4, 2008.

Please feel free to send your comments to CUNA SVP & Deputy General Counsel Mary Dunn at mdunn@cuna.com or to Assistant General Counsel Lilly Thomas at lthomas@cuna.com; or mail them to Lilly c/o CUNA’s Regulatory Advocacy Department, 601 Pennsylvania Avenue, NW, South Building, Suite 600, Washington, D.C. 20004. Click here for a copy of the proposed rule notice and request for comment.

QUESTIONS REGARDING THE FORM

1. No changes will be made to the form. Are there any changes you would like to see made?
   
   

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2. Do you think Form 1099-C is necessary for verifying whether an individual properly reported a discharged debt?
   
   

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3. The IRS estimates that it takes ten minutes to complete the form. Do you think the agency’s estimate is accurate?
   
   

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4. What ways, if any, could Form 1099-C be improved?
   
   

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