Section 1018.80 - Reporting discharged debts to the Internal Revenue ServiceWhen the Board 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 IRS, when:
(a) The principal amount of the debt not in dispute is $600 or more;(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 tax year a formal compromise agreement was reached in which the debtor was legally discharged of all or a portion of the obligation.