Can a publicly held corporation file a 1099-C for bad debt as it related to accounts receivable?

Generally, Form 1099-C is for use by organizations having a significant trade or business of lending money. It can be required where a company’s principal business is not lending money, but 1099-C has to do with forgiveness of loan debt, not bad debt from trade credit. Form 1099-C is not for non-lending companies’ bad debt. See the Instructions for Forms 1099-A and 1099-C, page 2, “Who must file” for form 1099-C. We confirmed this with IRS information reporting agent Ms. Carroll (ED# 0705419).

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