Gold Book: The Check Reclamation Guide

Section 7: Notice of Discharged Debt and Reporting to the IRS and IRS Form 1099-C

IRS Reporting: Under 31 CFR 240.8 FMS has the right to recover interest, penalty and administrative fees. Where collection action has been consistently attempted and the reclamation still remains unpaid, the legitimate debt will then be reported to the Internal Revenue Service on IRS Form 1099-C.

Purpose: The Cumulative Notice of Discharged Debt is sent to financial institutions monthly to notify them of their canceled debt that will be reported to the Internal Revenue Service on Form 1099C.

CCTRR343: Below is a sample of the Cumulative Notice of Discharged Debt to Banks (CCTRR343). Click here for larger view.

Payment: If a financial institution elects to pay a discharged debt rather than having that debt reported to the Internal Revenue Service, then their payment should be directed to the Federal Reserve Bank (authorizations) or FMS (cashier's checks) along with a copy of the Notice of Discharged Debt (CCTRR343) no later than December 31st.