If you received Form 1099-C Cancellation of Debt and are eligible to exclude a canceled debt from your income because of any of the following, file Form 982 Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment) with your return (note that if you did not receive a Form 1099-C from the lender, you should not have any canceled debt income and should not need to file Form 982):
The cancellation is intended as a gift
The debt is qualified farm debt (see chapter 3 of Publication 225Farmer's Tax Guide)
The debt is qualified real property business debt (see chapter 5 of Publication 334Tax Guide for Small Business)
You are insolvent or bankrupt (see Publication 908Bankruptcy Tax Guide)