How to Report Form 1099-A: Acquisition or Abandonment of Secured Property

Form 1099-A is used by lenders to report when they acquire an interest in property that secures a debt, or when they have reason to know the secured property has been abandoned. Both lenders and borrowers need to understand how to handle this form correctly.

What Is Form 1099-A?

Lenders use Form 1099-A to report foreclosures, repossessions, and abandonments of property that secure a loan. However, no reporting is required for personal property securing a loan to an individual and held for personal use. Banks, credit unions, finance firms, auto lenders, holders of private money notes, government units, and any business whose significant trade or business includes lending money can be required to file it when the property is not excluded.

The Form 1099-A layout has six numbered boxes. Box 1 reports the date of acquisition or abandonment, Box 2 shows the principal balance outstanding, Box 3 is not currently used, Box 4 reports the property’s fair market value, Box 5 is a checkbox for whether the borrower is personally liable for repayment, and Box 6 is a concise property description so the IRS and borrower can clearly identify the asset.

Form 1099-A is a multi-part form: Copy A is filed with the IRS, Copy B is furnished to the borrower, and Copy C is retained by the lender. Copy B helps the borrower calculate gain or loss on the foreclosure or abandonment and assess whether there may also be cancellation-of-debt income (often reported separately on Form 1099-C).

However, if, in the same calendar year, you happen to cancel a debt equal to or more than $600 in connection with a foreclosure or abandonment of secured property, you generally will need to file only Form 1099-C. You satisfy the Form 1099-A requirement by filling in Boxes 4, 5, and 7 on Form 1099-C.

Why Filing Form 1099-A Correctly and On Time Matters to Payers

Each 1099-A you file (or don’t file) has knock-on effects for IRS matching, penalties, exams, and how your portfolio looks on paper.

• IRS matching pressure: Copy A goes into the IRS Automated Underreporter (AUR) system, where it’s matched against the borrower’s Form 1040. If the foreclosure or abandonment isn’t reflected properly on their return, that mismatch can trigger a CP2000 underreporter notice.
• Real dollar penalties: For 2025 information returns filed in 2026, Section 6721 penalties run $60 per return if corrected within 30 days, $130 if you fix them by August 1, and $340 if you file after that or not at all. Intentional disregard jumps the penalty to at least $680 per return with no cap.
• Exam visibility: A foreclosure on the borrower’s return with no corresponding 1099-A or 1099-C is the kind of gap that invites questions from SB/SE or individual exam, especially when there are multiple properties or prior noncompliance in the file.
• Cleaner portfolio metrics: Consistent 1099-A reporting supports charge-off calculations, GAAP loss provisions, and internal credit-risk analytics. You get fewer “mystery” nonperforming assets and a tighter link between tax reporting and reserve methodology.
• Borrower and regulator optics: When a borrower can’t reconcile a foreclosure with the tax forms you issued, routine disputes can escalate into complaints to regulators or the CFPB, especially in mortgage and auto portfolios. Getting 1099-A and 1099-C right reduces those escalation paths.

When a Payer Must File Form 1099-A

You must file Form 1099-A when both are true:

• You are a lender in the course of your trade or business, and
• You either acquire an interest in the property that secures the debt or have reason to know the property has been abandoned.

Note: You do not need to file Form 1099-A for tangible personal property securing a loan to an individual and held for personal use.

Acquisition of property

File Form 1099-A for the calendar year in which you take the property back, including:

• Title transfer after foreclosure
• Deed in lieu of foreclosure
• UCC repossession or similar collateral repossession
• Credit bid at a sheriff’s or trustee’s sale

Knowledge of abandonment

File Form 1099-A when you first have reason to know the borrower has walked away from the property. Evidence can include:

• Returned certified mail notices with no response
• Skip-tracing notes indicating no contact / no forwarding
• Inspection logs showing the property is vacant and unsecured

How Box 1 Sets the Reporting Year

Box 1 is determined by the event:

• For an acquisition, you need to enter the date on which you acquired the secured property (generally the earlier of title transfer or transfer of possession and burdens/benefits).
• For foreclosure or execution sales, use the later of the sale date or the end of any right of redemption.
• For an abandonment, enter the date you knew or had reason to know the property was abandoned—unless you expect to commence foreclosure within 3 months, in which case reporting is as of the acquisition/sale date (or at the end of the 3-month period if no action occurs).

File Form 1099-A in the year following the calendar year of that event.

No minimum dollar amount

There is no dollar threshold for Form 1099-A when a reportable acquisition or abandonment occurs (except for personal-use tangible property). Box 2 must show the unpaid principal as of the Box 1 date, and Box 4 is completed only as specified in the instructions—do not enter $0 in both boxes unless those are the actual amounts required.

Deadlines for 2025 Forms 1099-A (filed in 2026)

• Borrower copy (Copy B): February 2, 2026
• Paper filing with Form 1096: March 2, 2026
• Electronic filing: March 31, 2026

To extend the IRS filing deadline (paper or e-file), submit Form 8809 by the original due date for an automatic 30-day extension. (This does not extend the borrower copy deadline.)

Same-year cancellation (1099-A vs 1099-C rules)

If, for the same borrower and secured debt in the same calendar year:

• You acquire an interest in, or know of abandonment of, the property, and
• You cancel $600 or more of that debt, then you generally file Form 1099-C only for that year and do not file a separate Form 1099-A.

Line-by-Line Guide to Completing Form 1099-A

How to complete 1099-A Boxes 1–6

Filling out other key details

Important: Don’t mix up Box 2 (principal) and Box 4 (FMV). Swapping them creates obviously wrong reporting and confusion.

How to File Form 1099-A With 1099Online

You can turn the process of secured-property foreclosure reporting into a breeze with 1099Online:

1. Import your data

You can upload all your data onto the platform using a CSV, Excel file, or by using a REST API connection. The platform will then automatically fill in the fields on Form 1099-A, i.e., borrower, payer, and property data.

2. Run validation checks

Before you submit, run the built-in validations:

IRS TIN Matching (where enabled)

Other correctness checks (numeric formats, dates, and logical edits)

Alerts when you’re over the 10-return e-file mandate threshold across all information returns

3. Deliver borrower copies

Next, handle borrower delivery by:

Using a secure online portal with e-consent and access tracking

Adding USPS First-Class mailing for borrowers who don’t consent to electronic delivery (optional add-on)

4. E-file to the IRS

With one click, you can e-file Form 1099-A through the IRS IRIS/FIRE channels and generate a Form 1096 PDF for your internal files or paper backup.

5. Archive for audits

Finally, you receive an immutable PDF archive and a CSV export that can be retained for 7 years for audit and portfolio review purposes. You ideally need to keep copies (or be able to reconstruct the data) for at least 3 years—4 years for Form 1099-C, and 4 years if backup withholding was imposed.

E-File Mandate & Extension Options

If you file 10 or more information returns in a year, including W-2s, 1099s, and 1098s, you must e-file all of them. For example, 4 Forms 1098 and 6 Forms 1099-A total 10, requiring e-filing.

You can choose from a few platforms for e-filing:

• IRIS (free): The Taxpayer Portal allows CSV uploads with a limit of 100 records per CSV file; you may submit an unlimited number of CSV files.
• FIRE (older system): Fixed-length text files (Publication 1220 specifications, not XML).
• 1099Online: Given its dual IRIS and FIRE compatibility, it is a far easier platform for e-filing your information returns, as it eliminates the need for ID.me-style sign-on issues.

Extension

To request a 30-day extension to file with the IRS, you need to submit Form 8809 by the original due date, i.e., March 31, 2026. You may file it on paper or through the FIRE System (online fill-in or electronic file). Note that this automatic extension is only for filing with the IRS and does not apply to recipient copy furnishing deadlines, and that no automatic extension is available for Forms 1099-NEC and W-2.

Common Mistakes & IRS Red Flags

Stay away from these frequent slipups that can draw borrower complaints or IRS attention:

Leaving Box 5 blank on a recourse loan

If the borrower is personally liable and Box 5 isn’t checked, their preparer may compute the wrong mix of gain/loss vs. cancellation-of-debt income.

Weak or outdated FMV support

A fair market value that bears no relationship to the foreclosure bid, sale proceeds, or a current appraisal is an easy target for questions and CP2000 follow-up on the borrower’s side.

Doubling up with 1099-A and 1099-C

For the same borrower, same debt, and same year, you generally file 1099-C only (with the 1099-A data completed on that form). Filing both for the same event in the same year just invites confusion for the IRS and the preparer.

Late borrower statements

Mailing borrower copies after February 2, 2026, exposes you to information-return penalties:

$60 per form if you fix it within 30 days

$130 per form if you fix it by August 1

$340 per form after August 1, or not at all

Intentional disregard starts at $680 per form with no maximum.

Ignoring the 10-return e-file mandate

If you file 10 or more total information returns (all types combined) for the year and still send paper 1099-As, the IRS can treat that as a failure-to-file and apply the same per-form penalties above; willful noncompliance risks being treated as intentional disregard.

Treating Box 6 like a legal memo

Box 6 is for a concise description (address or asset ID), not a full narrative. Overstuffing it creates readability issues, and if your e-file vendor truncates or misformats the line, you can end up with garbled property descriptions in the IRS data.

Real-Life Scenarios

FAQs

1. Is a 1099-A required for every foreclosure?

You’ll need to file Form 1099-A if you lend any amount in connection with your business or trade and, in full or partial satisfaction of the debt, you obtain an interest in a property that secures the debt, or you reasonably know that the property has been abandoned. However, do not file for tangible personal property securing a loan to an individual and held for personal use.

2. Does the dollar amount affect filing?

No, regardless of balance or FMV, the form is necessary; there is no financial threshold.

3. When should Box 5 be checked “Yes”?

Check Box 5 if the borrower was personally liable for the debt when it originated or, if modified, when it was last modified (recourse debt).

4. Can one return satisfy both 1099-A and 1099-C?

Yes. In the event that you cancel a debt of $600 or more, which is connected to a foreclosure or abandonment of secured property—both events taking place in the same calendar year—you can file only Form 1099-C. You satisfy Form 1099-A requirements when you complete Boxes 4, 5, and 7 on 1099-C in those cases.

5. What if fewer than 10 total returns are filed?

If you are required to file fewer than 10 information returns in aggregate for the calendar year, you may paper-file your forms. However, if you file 10 or more in total across all types, you must e-file unless a waiver applies.

6. How does 1099Online handle state filings?

1099Online files Form 1099-A with the IRS. There isn’t a standard “automatic state copy” for 1099-A under the IRS Combined Federal/State Filing program. For 1099 forms that are in that program, 1099Online uses the IRS pipeline to send data to participating states on your behalf. However, for non-participating states, you still need to follow that state’s own filing rules.

The Bottom Line

Form 1099-A is not just foreclosure paperwork—it’s the record the IRS and the borrower use to line up property, debt, and timing. If Box 1, Box 2, Box 4, or Box 5 is wrong or missing, you invite CP2000 notices, bad gain/loss reporting, and noisy portfolio data. Treat 1099-A as a standard workflow for efficiency and compliance.