IRS publishes guidance for lenders and loan servicers on certain discharged student loans

Tax News Update Email this document Print this document

December 21, 2021
2021-2293

The IRS has announced (Notice 2022-01) that lenders and servicers of certain student loans should not file Forms 1099-C, Cancellation of Debt, or submit payee statements for student loan debt under IRC Section 6050P to report the discharge of student loans excluded from gross income under IRC Section 108(f)(5), as amended by the American Rescue Plan Act of 2021, for tax years 2021-2025.

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

EY US Tax News Update Master Agreement | EY Privacy Statement