Finance & markets · 15/10/2014Updated: 10/17/2026 · 1 min read

IRS Proposes to Eliminate 36-Month Non-Payment Testing Period for Cancellation of Debt Rule

The IRS is proposing to remove a rule requiring financial institutions and governmental entities to file a Form 1099-C for cancelled debts after a 36-month non-payment period, aiming to reduce confusion and increase tax compliance.