fyllyoThe balance, the payment or the discharged amount
A canceled-debt file is full of dollar amounts: the original loan, the unpaid balance, the payoff, the sale proceeds, what the borrower paid. Software can copy any of them into box 2.
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Fill Form 1099-C with AICancellation of Debt
Add the lender’s reporting instructions, the settlement or waiver agreement, the payoff statement, the appraisal and the debtor’s address record. Fyllyo fills Form 1099-C on your Mac and shows the lines behind each answer for you to check.
Where AI form filling goes wrong on Form 1099-C
Form 1099-C has only a few boxes, but a canceled-debt file holds many dates, many dollar amounts and several codes, and only one of each belongs on the form. These are the common places AI tools and autofill get it wrong. What the form requires is for the IRS to say. Follow its instructions. IRS instructions for Form 1099-C.
Which date is the identifiable event
The file carries a charge-off date, an approval letter, a closing date, two signature dates and the date the report was prepared. Software often takes the first date it sees, or the date on the letter.
Interest in the total, or interest on the account
Box 3 is only for interest included in the discharged amount, as the form says. Payoff statements also show interest paid this year, a daily interest charge and a rate, and software can copy one of those.
The event code letter, not a status code
Box 6 takes one letter for the kind of event. Collection notices and loan systems carry their own status and workflow codes, and software can copy one of those, or the whole explanation.
Which value is the fair market value
A short sale file has a listing price, a sale price, an assessed value and an appraised value. Software can put any of them in box 7.
The sold property isn’t the debtor’s address
The loan, the notices and the appraisal all show the property’s address, and the borrower has since moved. Software can fill the old address as the debtor’s.
How Fyllyo takes care of them
With a test client and seven documents (the lender’s reporting authorization, a deficiency waiver, a payoff statement, an appraisal, a short-sale closing summary, an address change and a collections notice), Fyllyo filled 13 fields in 9 seconds. Each answer shows the lines it came from.
- The balance, the payment or the discharged amount. Reads only the amount the lender says was discharged, never a balance, a payoff or a payment. In the test, that was 53,420.
- Which date is the identifiable event. Fills box 1 with the date the lender gives for the identifiable event, never a letter, approval, signature or preparation date.
- Interest in the total, or interest on the account. Fills box 3 only with interest the lender says is included in box 2. In the test, that was 6,180, not the year’s interest paid or the daily charge.
- The event code letter, not a status code. Copies only the code the lender assigns to box 6. In the test, that was F, not the collection system’s G2.
- Which value is the fair market value. Fills box 7 with the valuation the lender designates for it. In the test, that was the 271,000 appraisal, not the sale, listing or assessed figures.
- The sold property isn’t the debtor’s address. Reads the debtor’s current mailing address from the latest address record, never the property or a former address.
How much of a Form 1099-C does Fyllyo fill?
Fyllyo can fill all 16 fields on Form 1099-C from the client’s documents. Lines the documents don’t support stay blank and are listed for you to check.
You confirm on every form
- Debtor's TIN
- Debtor's name
- Amount of debt discharged
What do you give Fyllyo?
Fyllyo reads the documents you already have. These can be PDFs, scans, photos, Word files or typed notes, and you can add several at once. Fyllyo works out which document answers which line.
Client data stays on your Mac
Client documents and the filled form never leave your computer. Fyllyo uploads nothing. Once it is set up, filling works offline.
What Fyllyo doesn’t do
Fyllyo doesn’t decide what to file, give legal or tax advice, or submit Form 1099-C for you. Use the IRS’s instructions for Form 1099-C and your professional judgement. Fyllyo does the reading and the typing.
What if a document is a scan or a photo?
Fyllyo reads scans and photos as well as PDFs, Word files and typed notes. Clear, readable copies give the best results, and every answer on Form 1099-C still shows the line it came from.
Fill your next Form 1099-C on your Mac
Try form filling free for 5 days. Then buy Fyllyo Paid once for $99. It is a lifetime licence with free updates and no subscription. Filling forms on your Mac uses no AI credits. Pricing and licence details.