Some creditors have sent 1099 forms to to debtors purporting to have "forgiven" the debt that was actually discharged. The problem is the IRS also receives the form and expects it to be listed as "taxable income" on your 1040 tax return.
The IRS form provided here informs the IRS that the debt was discharged in a bankruptcy and should not be considered taxable income. You should only file this form if you receive one of the bogus 1099s from a creditor but if you do, this form is required or the IRS will expect you to pay taxes on the 'forgiven' debt as income.
Discharge_1099_982.pdf
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