Most creditors are aware that a Form 1099-C, Cancellation of Debt, must be filed with the IRS upon a cancellation of debt. However, many creditors are unaware that a Form 1099-A, Acquisition or Abandonment of Secured Property, must be filed after foreclosures and certain repossessions even when the deficiency “stays alive” and no cancellation of debt has occurred.

The 1099-A reporting requirements apply to any party who lends money in connection with its trade or business. The IRS casts a much wider net with the 1099-A than it does with the 1099-C, and many creditors who are not subject to the 1099-C requirements will still have to file a 1099-A. Even if you are not in the business of lending money, you may be required to file a 1099-A if you, in full or partial satisfaction of a debt, acquire an interest in property that is security for a debt.