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Title 26, Internal Revenue CodeRelease 119-110

§6050P Returns Relating to the Cancellation of Indebtedness by Certain Entities

Title 26 › Subtitle F — Procedure and Administration › CHAPTER 61 — INFORMATION AND RETURNS › Subchapter A — Returns and Records › PART III — INFORMATION RETURNS › Subpart B — Information Concerning Transactions With Other Persons › § 6050P

Last updated Sep 22, 2026|Official source

Summary

If an agency or certain lenders cancel a person’s debt, they must tell the IRS about it for the year when the debt was canceled. The report must give each person’s name, address, tax ID, the date the debt was canceled, how much was canceled, and any other details the IRS asks for. No report is needed for cancellations under $600. The lender or agency must also send the same written statement to each person by January 31 of the year after the debt was canceled. A government agency can instead give the IRS the information and have the IRS file the report and send a copy back. Applicable entity — government agencies and covered financial lenders. Applicable financial entity — banks, credit unions, federal deposit insurers and similar federal agencies, certain supervised subsidiaries, and businesses whose main work is lending money. Governmental units — a designated officer or employee files the report for the agency.

Full Legal Text

Title 26, §6050P

Internal Revenue Code, Source: USLM XML via OLRC

(a)In general
Any applicable entity which discharges (in whole or in part) the indebtedness of any person during any calendar year shall make a return (at such time and in such form as the Secretary may by regulations prescribe) setting forth—
(1)the name, address, and TIN of each person whose indebtedness was discharged during such calendar year,
(2)the date of the discharge and the amount of the indebtedness discharged, and
(3)such other information as the Secretary may prescribe.
(b)Exception
Subsection (a) shall not apply to any discharge of less than $600.
(c)Definitions and special rules
For purposes of this section
(1) Applicable entity
(2)Applicable financial entity
The term “applicable financial entity” means—
(A)any financial institution described in section 581 or 591(a) and any credit union,
(B)the Federal Deposit Insurance Corporation, the Resolution Trust Corporation, the National Credit Union Administration, and any other Federal executive agency (as defined in section 6050M), and any successor or subunit of any of the foregoing,
(C)any other corporation which is a direct or indirect subsidiary of an entity referred to in subparagraph (A) but only if, by virtue of being affiliated with such entity, such other corporation is subject to supervision and examination by a Federal or State agency which regulates entities referred to in subparagraph (A), and
(D)any organization a significant trade or business of which is the lending of money.
(3)Governmental units
In the case of an entity described in paragraph (1)(A) or (2)(B), any return under this section shall be made by the officer or employee appropriately designated for the purpose of making such return.
(d)Statements to be furnished to persons with respect to whom information is required to be furnished
Every applicable entity required to make a return under subsection (a) shall furnish to each person whose name is required to be set forth in such return a written statement showing—
(1)the name and address of the entity required to make such return, and
(2)the information required to be shown on the return with respect to such person.
The written statement required under the preceding sentence shall be furnished to the person on or before January 31 of the year following the calendar year for which the return under subsection (a) was made.
(e)Alternative procedure
In lieu of making a return required under subsection (a), an agency described in subsection (c)(1)(A) may submit to the Secretary (at such time and in such form as the Secretary may by regulations prescribe) information sufficient for the Secretary to complete such a return on behalf of such agency. Upon receipt of such information, the Secretary shall complete such return and provide a copy of such return to such agency.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1999—Subsec. (c)(2)(D). Pub. L. 106–170 added subpar. (D). 1996—Pub. L. 104–134, § 31001(m)(2)(D)(ii), amended section catchline generally, striking out “financial” before “entities”. Subsec. (a). Pub. L. 104–134, § 31001(m)(2)(A), struck out “financial” before “entity” in introductory provisions. Subsec. (c). Pub. L. 104–134, § 31001(m)(2)(B), added par. (1), redesignated former par. (1) as (2), and redesignated former par. (2) as (3) and substituted “(1)(A) or (2)(B)” for “(1)(B)”. Subsec. (d). Pub. L. 104–134, § 31001(m)(2)(D)(i), struck out “financial” before “entity” in introductory provisions. Subsec. (e). Pub. L. 104–134, § 31001(m)(2)(C), added subsec. (e).

Statutory Notes and Related Subsidiaries

Effective Date

of 1999 Amendment Pub. L. 106–170, title V, § 533(b), Dec. 17, 1999, 113 Stat. 1931, provided that: “The amendment made by subsection (a) [amending this section] shall apply to discharges of indebtedness after December 31, 1999.”

Effective Date

Pub. L. 103–66, title XIII, § 13252(d), Aug. 10, 1993, 107 Stat. 532, provided that: “(1) In general.—Except as provided in paragraph (2), the

Amendments

made by this section [enacting this section and amending section 6724 of this title] shall apply to discharges of indebtedness after December 31, 1993. “(2) Governmental entities.—In the case of an entity referred to in section 6050P(c)(1)(B) of the Internal Revenue Code of 1986 (as added by this section), the

Amendments

made by this section shall apply to discharges of indebtedness after the date of the enactment of this Act [Aug. 10, 1993].”

Reference

Citations & Metadata

Citation

26 U.S.C. § 6050P

Title 26, Internal Revenue Code

Last Updated

Sep 22, 2026

Release point: 119-110