Taxation

TLDR: Revival Finance, Inc. is not required to report debt cancellation from across our website, revivalfunds.com. Form 1099-C defines Debt Cancellation as an agreement between the creditor and the debtor to cancel the debt at less than full consideration. Because Revival Finance, Inc. is technically a related party, it does not fall under the required reporting guidelines for Form 1099-C.

Debt Defined. A debt is any amount owed to you, including stated principal, stated interest, fees, penalties, administrative costs, and fines. The amount of debt canceled may be all or only part of the total amount owed. However, for a lending transaction, you are required to report only the stated principal.

Related Parties. Generally, a creditor is not required to file Form 1099-C for the deemed cancellation of a debt that occurs when the creditor acquires the debt of a related debtor, becomes related to the debtor, or transfers the debt to another creditor related to the debtor.

Student Loan Indebtedness. For discharges occurring after December 31, 2017, you are not required to file Form 1099-C for student loan indebtedness if the discharge of the debt is due to the student's death or permanent and total disability.Rev. Proc. 2020-11 establishes a safe harbor extending the relief provided under Rev. Proc. 2015-57, 2015-51 I.R.B. 863, Rev. Proc. 2017-24, 2017-7 I.R.B. 916, and Rev. Proc. 2018-39, 2018-34 I.R.B. 319, to additional taxpayers who took out federal or private student loans to finance attendance at a nonprofit or for-profit school. Relief is also extended to any creditor that is an applicable entity, as defined by section 6050P and the regulations thereunder, that would otherwise be required to file information returns and furnish payee statements pursuant to section 6050P for the discharge of any indebtedness within the scope of this revenue procedure. The IRS will not assert that a creditor that is an applicable entity, as defined by section 6050P and the regulations thereunder, must file information returns and furnish payee statements pursuant to section 6050P for the discharge of any indebtedness within the scope of these revenue procedures. See Rev. Proc. 2020-11 to determine whether a creditor or taxpayer qualifies for relief.

Section references are to the Internal Revenue Code unless otherwise noted. Rev. January 2022.