How Should Debt that is Forgiven Appear on the FEC Form 3/3X/3P?

When it comes to debt forgiveness on FEC reports, specifically the Forms 3, 3X, and 3P, the corresponding entries will be reflected the same. This information has been confirmed by the FEC.

When a balance reduction entry is entered into ISP with either the tag of Forgiven or Third Party Repayment, the system will automatically include the following entries on the FEC report. This will only apply to accrued expenses that meet the debt itemization thresholds explained here. 

1. The balance reduction entry will appear on Schedule A receipts as a memo with memo text explaining that the debt was paid off either by forgiveness or a third-party repayment.
2. The original debt amount will appear on Schedule D in either the “Amount Incurred This Period” field (if the debt has not been previously disclosed), or the “Outstanding Balance Beginning This Period” field.
3. An additional text page will appear directly after Schedule D explaining that the debt was reduced by either forgiveness or a third-party repayment.