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Title 26 — Internal Revenue CodeRelease 119-73not60

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

Title 26 › Subtitle 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 Apr 5, 2026|Official source

Summary

Must file a report when an entity cancels all or part of a person’s debt in a calendar year. The report must show the person’s name, address, and TIN, the date the debt was canceled, the amount canceled, and any other details the Secretary requires. The report must be filed when and on the form the Secretary sets. No report is needed for cancellations under $600. “Applicable entity” means government agencies and certain financial groups. “Applicable financial entity” includes banks and credit unions, the FDIC/RTC/NCUA and similar federal bodies, subsidiaries that are supervised like banks, and businesses whose main work is lending money. The person who files must also give the debtor a written statement with the filer’s name and address and the same details shown on the report. A government agency can instead send the needed information to the Secretary and the Secretary will complete the report and give the agency a copy.

Full Legal Text

Title 26, §6050P

Internal Revenue Code — Source: USLM XML via OLRC

(a)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)Subsection (a) shall not apply to any discharge of less than $600.
(c)For purposes of this section—
(1)The term “applicable entity” means—
(A)an executive, judicial, or legislative agency (as defined in section 3701(a)(4) of title 31, United States Code), and
(B)an applicable financial entity.
(2)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)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)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.
(e)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

Apr 5, 2026

Release point: 119-73not60