<p>“What happens is that lenders report canceled debts in excess of $600 to the IRS with a 1099-C form. The canceled debt is generally considered to be income for the borrower, so the borrower should be including the info from the 1099-C on his tax return. Depending on the amount of the loan, this can have a noticeable impact on how much the borrower owes or receives as a refund from the IRS.” …</p>
<p>[Loan</a> Co-Signers Should Not Be On The Hook With The IRS If The Debt Is Forgiven ? Consumerist](<a href=“http://consumerist.com/2013/04/25/loan-co-signers-should-not-be-on-the-hook-with-the-irs-if-the-debt-is-forgiven/]Loan”>Loan Co-Signers Should Not Be On The Hook With The IRS If The Debt Is Forgiven – Consumerist)</p>