8654

     Financial institutions and certain government agencies are generally required to inform
both the IRS and the debtor when they forgive a debt of $600 or more.  These regulations,
which were published in the Federal Register of January 4, 1996, require that the Form 1099-
C be used for such report.  They also exempt certain adjustments, such as forgiveness of

interest, some penalties
 or fees from the reporting requirement.