Received a notice about Cancellation of debt: 1099-C not received after vehicle repossession?

When a lender repossesses a vehicle and then forgives the remaining debt (usually after they sell the car and you still owe a balance), they're required to issue a 1099-C for that forgiven amount. This is considered income by the IRS because you received a benefit by not having to pay back money you originally borrowed. First, check if it might have been sent to an old address. If you've moved since the repossession, the lender might have sent it to your previous address. Second, you can contact the lender directly and request a copy - they're required by law to provide it. Ask specifically for the 1099-C relating to your repossessed vehicle. If you still can't get it, you can still file your taxes. You'll need to include the canceled debt as income on your return. If you have the notice showing the amount of debt that was canceled, use that figure. Keep all documentation showing your attempts to obtain the proper form in case of questions later.

I had a similar situation last year with a repossessed truck and missing 1099-C. I was pulling my hair out until I found https://taxr.ai - it totally saved me! You upload your financial docs and it analyzes them to figure out exactly what you should do. In my case, it helped me calculate my insolvency at the time of repossession and showed me how to properly document everything so I could exclude that debt from my taxable income. The system even generated a letter template I could send to the lender requesting the missing form. Super helpful and way less stressful than trying to figure everything out myself.

Just wanted to update after using https://taxr.ai for my canceled debt situation! I was skeptical when I first saw it mentioned here, but I was desperate with three 1099-Cs and no idea what to do. The tool was amazing - it analyzed all my documents, figured out I was partially insolvent, and showed me exactly how to fill out Form 982 correctly. The best part was that it created a detailed audit defense file with all my calculations and supporting documentation. I feel so much more confident now that everything is filed correctly. Definitely worth checking out if you're dealing with canceled debt issues like the original poster!

After dealing with 1099-C issues for years as a tax preparer, I can tell you that getting straight answers from the IRS about canceled debt is nearly impossible. The phone wait times are ridiculous - I once waited 3.5 hours just to be disconnected! I started using https://claimyr.com for my clients with complex cancelation of debt situations. They get you connected to an actual IRS agent in about 15 minutes instead of waiting for hours. Check out how it works here: https://youtu.be/_kiP6q8DX5c This is especially helpful for cancelation of debt questions because the IRS representatives can look up whether a 1099-C was actually filed by your lender and give you the exact amount reported, even if you never received the form. This information is critical for filing correctly.

Well I need to eat my words and apologize to @18. I was so frustrated with my 1099-C situation that I was lashing out. After seeing your reply, I actually tried Claimyr yesterday out of desperation - my lender was claiming they sent a 1099-C but I never got it. Got connected to an IRS agent in about 12 minutes (!!!) and they confirmed my lender HAD filed the 1099-C and gave me the exact amount. Turns out it was almost $4,000 less than what the lender was telling me over the phone! The agent even explained how to report it without the actual form. Honestly saved me from potentially paying taxes on $4k of phantom income. Consider me converted from skeptic to believer.

Make sure you check if you qualify for the "qualified principal residence indebtedness" exclusion too! A lot of people don't realize this applies to some vehicle loans if you were using the vehicle as your primary residence (like an RV or camper that you lived in). The rules changed in recent years but you might still qualify.

Don't forget the statute of limitations on this! If your car was repossessed in 2021 but the lender is just now sending the 1099-C in 2025, something seems off. The IRS generally requires lenders to issue the 1099-C in the year the debt was actually canceled, not years later.

@Mae Bennett, I went through something very similar when my truck was repossessed in 2022. The timing confusion is totally normal - lenders often wait months or even years before officially "canceling" the remaining debt, especially if they're still trying to collect or if the debt gets sold to collection agencies. Here's what I'd recommend: First, call the original lender (not any collection agency) and ask specifically about the 1099-C status. Get the exact date they consider the debt "canceled" - this determines which tax year it applies to. If they canceled it in 2024, it affects your 2024 taxes. If it was 2023, you might need to amend that return. The good news is you have options even without the physical form. Keep that official notice you received as documentation. You can report the canceled debt amount on your tax return using the information from that notice. Just make sure to explore the insolvency exclusion others mentioned - if your total debts exceeded your assets when the debt was canceled, you might not owe any taxes on it at all. Don't stress too much about "getting in trouble" - the IRS deals with missing 1099-C situations all the time. As long as you report the income (or properly exclude it), you'll be fine.