Updated November 7, 2026. Quick answer: Box 6 of Form 1099-C holds one letter, A to H, that tells you the reason the creditor filed: A bankruptcy, B other judicial debt relief, C statute of limitations or expiration of the deficiency period, D foreclosure election, E probate or similar proceeding, F by agreement, G decision or policy to discontinue collection, H other actual discharge before an identifiable event. The code names the event; it does not decide whether the amount is taxable.
What the debtor’s copy says
Copy B says what the box is: “Box 6. Shows the reason your creditor has filed this form.” Publication 4681 prints the same eight letters as a reference guide and explains each of them. The table below follows that explanation.
The eight codes
| Code | Name | Publication 4681 |
|---|---|---|
| A | Bankruptcy | “Code A is used to identify cancellation of debt as a result of a title 11 bankruptcy case.” |
| B | Other judicial debt relief | “Code B is used to identify cancellation of debt as a result of a receivership, foreclosure, or similar federal or state court proceeding other than bankruptcy.” |
| C | Statute of limitations or expiration of deficiency period | “Code C is used to identify cancellation of debt either when the statute of limitations for collecting the debt expires or when the statutory period for filing a claim or beginning a deficiency judgment proceeding expires.” |
| D | Foreclosure election | “Code D is used to identify cancellation of debt when the creditor elects foreclosure remedies that statutorily end or bar the creditor’s right to pursue collection of the debt.” |
| E | Debt relief from probate or similar proceeding | “Code E is used to identify cancellation of debt as a result of a probate court or similar legal proceeding.” |
| F | By agreement | “Code F is used to identify cancellation of debt as a result of an agreement between the creditor and the debtor to cancel the debt at less than full consideration.” |
| G | Decision or policy to discontinue collection | “Code G is used to identify cancellation of debt as a result of a decision or a defined policy of the creditor to discontinue collection activity and cancel the debt.” |
| H | Other actual discharge before identifiable event | “Code H is used to identify an actual cancellation of debt that occurs before any of the identifiable events described in codes A through G.” |
Two codes with extra conditions
Code C is narrower than it sounds. The filer instructions say “Expiration of the statute of limitations is an identifiable event only when a debtor’s affirmative statute of limitations defense is upheld in a final judgment or decision of a court and the appeal period has expired.” So a debt that is simply old does not by itself produce a code C form. Code G is about the creditor’s practice: “A creditor’s established practice to stop collection activity and abandon a debt when a particular nonpayment period expires is a defined policy.”
What the code does and does not tell you
The code is the creditor’s label for the event. Whether you owe tax on the amount depends on the exceptions and exclusions, which are separate questions. A code A form points at the bankruptcy exclusion: “To show that your debt was canceled in a bankruptcy case and is excluded from income, attach Form 982 to your federal income tax return and check the box on line 1a.” For the other codes the reason to exclude something has to come from your own facts, such as insolvency, which is the insolvency worksheet question.
The code and the date in box 1
Box 1 is the date of the earliest identifiable event, so the code in box 6 and the date in box 1 describe the same event. The filer instructions give the date rule: “Enter the date of the identifiable event.” But if the creditor actually canceled before an event and chose to report it, “enter the date that you actually canceled the debt.” See the overview of all seven boxes for the rest of the form.
Edition
This page reads Form 1099-C and Form 1099-A (both Rev. April 2025), the Instructions for Forms 1099-A and 1099-C (Rev. April 2025) and Publication 4681 for 2025 returns, all files irs.gov served on November 7, 2026 (sha256 in the kit data). Check the revision printed on your own form before you follow a box reference, and the IRS page for the form for anything enacted after these files were published.
Common mistakes
- Reading code B, C or D as meaning you owe nothing, or as meaning you owe tax. The code names the event only.
- Assuming code C means a debt is old enough to be canceled. The instructions require a court decision upholding your defense, and the appeal period to run out.
- Using a code from a prior year’s form as if it described this one. Check the letter printed on the form you actually received.
Related: Form 1099-C boxes explained, and Insolvency Worksheet.
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Answer againSources
- Form 1099-C, Cancellation of Debt (Rev. April 2025): https://www.irs.gov/pub/irs-pdf/f1099c.pdf
- Instructions for Forms 1099-A and 1099-C (Rev. April 2025): https://www.irs.gov/pub/irs-pdf/i1099ac.pdf
- Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments (2025 returns): https://www.irs.gov/pub/irs-pdf/p4681.pdf
Read from the IRS documents linked above on November 7, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.