the truth about 1099 straight from the mouth of the IRS since everyone is giving misinformation file form 1099-a for each borrower if you lend money in connection with your Trader business and in full partial satisfaction of the debt comma you acquire interest in property that is security for the debt you have reason to know that the property has been abandoned so those are three different terms you are either lending money for full or partial satisfaction of a debt you require interest in a property that is security for the debt or you have reason to know that it is abandoned those are the three ways now under who must file it says that the trustee record owner or person acting on similar capacity must file a 1099 on behalf of all owners of beneficial interest or participate now a subsequent holder of a loan which is you is treated as a lender and is required to report events occurring after the loan is transferred to a new holder when you file it you must provide a statement to the borrower so if you're putting 111 constitutional drive that doesn't make you the lender why are you feeling out of 10.99 you're going to jail this is why the IRS hired all them 6 000 new people because everybody's lying to you and when you e-file the proper copies get sent to the proper people 1099-C is for debts over three years old that have more than six hundred dollars that are being canceled read the bottom there the debts there may be an individual and it tells you here anybody who lends money especially credit card companies are filing these every time you go into a transaction one of these 1099s gets filled out there's a way for you to search every single 1099 that has been filled out on your behalf 12 USC 1431 each Federal Home Loan Bank shall have the power subject to rules and regulations to borrow and give security you sign for the bank to get a loan who they borrowing that money from if it's not you I don't know who it is it's certainly not the treasury of the United States anybody telling you to put one-on-one constitutional drive is going to send you to jail and there's the truth that is why it is called acquisition or abandonment and just to be clear you do not have to correct any status us to do this