When a lender acquires ownership of a property through a foreclosure or repossession, or when a borrower surrenders a property, it is the responsibility of the lender to provide notification to the IRS in the form of Form 1099-A. Title “Acquisition or Abandonment of Secured Property,” which ensures that lenders as well as borrowers are tax compliant when there is a change in ownership or abandonment of a property.
This guide from an IRS-authorized Form 1099 Online provider, an organization that allows you to file form 1099 online, explains what Form 1099-A is, who needs to file it and how to complete the form, and the important filing deadlines for 2026.
Table of Contents
What Is Form 1099-A?
Form 1099-A – Loan Default allows lenders, banks, and other financial institutions to report information about when they secure an ownership stake in the property or when they become aware that the borrower has become a defaulter. Common situations include:
- repossession of real property that is pledged as security
- Borrower voluntarily hands over the collateral
- Foreclosure or other seizure of real estate or other secured property;
The form is used by the IRS to account for transfers of property with secured debt, and is used to find out if the borrower must pay taxes on a gain, or if he or she can claim a deductible loss.
Who Must File Form 1099-A?
The responsibility usually is that of:
- The lender or the financial institution having the secured debt.
- Governmental Agencies or Trust Institutions involved in the financing of properties or the collection of loans.
You must use a separate Form 1099-A for each borrower if:
- You get a stake in the property for which you are taking a loan, or
- The property has been abandoned as you know.
Information Needed on Form 1099-A
The following details are needed to complete this information accurately:
- Box 1 – Date the property was acquired by the lender or the property was known to be abandoned.
- (Box 2) – Balancing amount outstanding of the loan on that date
- Box 4 – Fair market value (FMV) of the property when acquired or abandoned
- Box 5 – Personal liability of the debtor for the debt
- Box 6 – Property description or Address
Also, the borrower’s and lender’s full legal name, addresses, and taxpayer identification numbers (TINs) must be identified. Avoid IRS errors and mismatch notices through proper data entry
How to Complete and File Form 1099-A in 2026
Form 1099-A in 2026 is a carefully detailed and time-sensitive document. Follow these steps:
1. Collect Information from Borrower and Property
Obtain borrower’s name and address, TIN, location and date of transfer or abandonment of property.
2. Complete the Form Carefully
Please fill the required fields correctly. Reconciling loan balances and property values against your records
3. Choose Your Filing Method
- Electronic Filing (Recommended) – Necessary for 250 or more forms, it’s faster, more secure and fewer mistakes are made.
- Paper Filing – If you file paper copies, enclose the form with Form 1096 (Annual Summary and Transmittal).
- Using a Federal e-Form IRS approved e-Form 1099 filing service like Form1099Online.com makes it easier and provides immediate confirmation of submission.
4. Send Copies to Addressees
Be returned to the borrower by January 31, 2026.
5. Submit to the IRS
- Date for filing in hard copy: February 28, 2026
- Electronic filing deadline: March 31, 2026
6. If Debt Is Also Canceled
If the lender forgives the balance of debt due from the borrower, send a separate Form 1099-C (Cancellation of Debt) with Form 1099-A.
Tax Reporting for Borrowers
If a borrower receives a Form 1099-A, he or she must report it on the federal income tax return:
- On personal investment property, the profit or loss is reported on Schedule D (Form 1040).
- Use Form 4797 (Sales of Business Property) on rental or business property.
Borrowers should work with a qualified tax professional to determine the transaction’s implication on their tax liability.
Deadlines for Filing Important Tax Documents in 2026
| Filing Type | Recipient Copy Deadline | IRS Deadline (Paper) | IRS Deadline (Electronic) |
| Form 1099-A | January 31, 2026 | February 28, 2026 | March 31, 2026 |
Early filing helps to prevent IRS penalties and keeps lender and borrower properly documented.
Best Practices for Proper Filing
- Check all borrower information prior to submission.
- Keep copies of all filed forms for a minimum of three years.
- Make sure you use the most recent version of the IRS form and IRS Instructions.
- Use online 1099 filing for faster processing and less errors.
Conclusion:
Form 1099-A Reporting of Mortgages, Charges of Real Estate Tax, and Real Estate Tax Credit Must Be Filed if Mortgages Are on Units of Property That Were Sold, Abandoned, or Foreclosed. Whether you are a financial institution or a loan compliance department, accuracy and timeliness are crucial to remaining IRS-compliant.
Form1099Online.com is an IRS-certified 1099 e-file service provider that enables you to complete Form 1099-A, Form 1099-C, and other 1099 forms online in a fast and secure manner. Make your 2026 tax season easier – file your 1099-A forms online today at Form1099Online.com.