No, it was not cancelled.  That’s why I think the marking of “final” may have been an actual mistake.  The TP (shareholder) attempted to file a return the next year (doesn’t remember why, but there was no activity in 2013) but it was rejected due to the “final” marking.  The entity was basically abandoned, in 2012, rightly or wrongly, with only this debt still on the books. Now that TP (shareholder) received a 1099-C, not sure what he should do with it (but doesn’t want to ignore it).  The 1099 is marked that the TP was personally liable for the debt, which was news to him.  He said lender (big bank purchased by another big bank prior to abandonment of the entity) never made much attempt to come after him and it NEVER showed on any of his credit reports.  He is looking for original loan docs but doubtful they can be found.  It’s actually two cancellations/1099’s by same lender, total about $30k.  Thanks in advance!