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Am I required to list a Cancellation of Debt, even if the lender never sent me a Form 1099-C?

Last year (2008) I sold my rental property via a "short-sell". However, my lender never sent me a Form 1099-C (Cancellation of Debt). Thus, am I required to list this cancellation of Debt on my Tax Return?

Public Comments

1. You should if it's a large amount, since it is considered income. the 1099-C is only if the debt was realized. A short sell may not be a debt if you never realized that income. If paying off the mortgage, canceled the interest payments that would have been debt. 1099-C is when you keep assets. In a foreclosure you would not have a 1099-C as long as you no longer have the property. Also, until a lender realized a loss and writes it off, a 1099-C would not be issued. This could take as long as the uncollected result of a law suit.
2. If you did not receive a 1099-C and the lender did not notify you that they were canceling the debt then you do not include any COD in income this year. You report COD income in the year that the debt is actually forgiven. That can be several years after the short sell or foreclosure. If the lender is still trying to collect on the balance due then they have clearly not forgiven the debt at least yet. If the mortgage is without recourse then there is no debt to be forgiven as the short sell (or the foreclosure, as appropriate) settles the debt in full.
3. It could come this year or next year. You deal with it whatever year it comes.