[Code of Federal Regulations]
[Title 7, Volume 1]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR3.81]

[Page 274]
 
                          TITLE 7--AGRICULTURE
 
PART 3_DEBT MANAGEMENT--Table of Contents
 
         Subpart D_Cooperation with the Internal Revenue Service
 
Sec. 3.81  Reporting discharged debts to the Internal Revenue Service.

    Authority: 26 U.S.C. 61, 31 U.S.C. 3720A, I TFRM 4055.50.


    When the Department discharges a debt for less than the full value 
of the indebtedness it will report the outstanding balance discharged, 
not including interest, to the Internal Revenue Service, using IRS Form 
1099-G or any other form prescribed by the Service, when:
    (a) The principal amount of the debt not in dispute is $600 or more; 
and
    (b) The obligation has not been discharged in a bankruptcy 
proceeding; and
    (c) The obligation is no longer collectible either because the time 
limit in the applicable statute for enforcing collection expired during 
the tax year, or because during the year a formal compromise agreement 
was reached in which the debtor was legally discharged of all or a 
portion of the obligation.

[50 FR 7726, Feb. 26, 1985]