Form 1099-INT is used by the IRS to track interest payments of $10 or more to an individual, partnership, LLC, estate or other recipient in the tax year. Reporting requirements generally apply to interest paid as part of a trade, business, rental or commercial activity. Entities that withheld federal income tax from interest payments must also file Form 1099-INT regardless of the amount.
1099-INT Due Date
By January 31, the payer must furnish 1099-INT Copy B to the recipient and file Copy A with the IRS to report the interest paid during the prior tax year. If reporting state tax information, Copy 1 of the 1099-INT may need to be filed with the applicable state by January 31 as well. The payer should retain Copy 2 of the 1099-INT for their records. Learn more about the different 1099-INT copies
Failure to file Form 1099-INT by the deadline may result in penalties of up to $280 per form. Intentionally disregarding filing requirements may result in much larger penalties.
TaxFormExpress offers file paper or electronic 1099-INT filing solutions. E-file is the preferred method and required by the IRS if submitting over 250 forms. As part of our e-file service, TaxFormExpress automatically creates 1096 transmittal forms and mails recipient copies.
Who needs to File 1099-INT
- Banks, credit unions, and other financial institutions that pay interest on accounts must file Form 1099-INT. This includes interest paid on checking and savings accounts, certificates of deposit, etc.
- Any individual, business, or entity that paid $10 or more in interest to an individual, partnership, LLC, estate, etc. during the tax year must file this form. For example, if you loaned money and paid $600 in interest, you would have to file.
- Brokers and barter exchanges that paid at least $10 in interest or dividends must file Form 1099-INT. Corporations where the IRS has notified them they are subject to reporting requirements must file applicable 1099 forms.
- Government entities like federal, state, or local agencies must file Form 1099-INT if they paid interest as part of a trade or business.
- Nonprofit organizations must file if they paid $600 or more in interest in the course of a trade or business.
- Trusts and estates must file Form 1099-INT if they paid $10 or more in interest.
1099-INT Filing Instructions
- Box 1 – Report the total amount of interest paid to the recipient during the tax year. This includes amounts credited in the year.
- Box 3 – Enter any interest that was early withdrawal penalty interest. This generally applies to CDs or other time accounts.
- Payer Info – Enter the name, address, and federal identification number of the payer who paid the interest.
- Recipient Info – Enter the name, address, and taxpayer identification number (usually Social Security number) of the recipient that received the interest payment.
- Account Number – Enter the recipient’s account number the interest relates to, if any.
- Box 6 – Report any foreign tax withheld and paid on the interest.
- Boxes 8-11 – Use these boxes to report bond premiums, market discount, and tax-exempt interest under certain conditions.
1099-INT Form Copies
The main copies are A to file with IRS, B to provide to the recipient, and Copy 2 for the payer’s own documentation and verification. The other copies have more specialized uses for state reporting or additional record keeping.
- Copy A – This is the copy that must be filed with the IRS by the deadline of January 31st. It should have the payer and recipient’s information, along with the interest amount and any withholding or taxes.
- Copy 1 – Copy 1 is sent to the State Tax Department, if a state income tax return is required by the recipient. What gets sent varies by state.
- Copy B – This copy gets sent to the recipient by January 31st. It shows the recipient the amount of interest income that was paid to them and reported to the IRS by the payer.
- Copy 2 – Copy 2 is kept by the payer for their own records. This documents the information that was reported to the IRS and the recipient.
- Copy C – This is an optional copy that can be used if reporting to multiple states. Certain states require Copy C for state reporting.
- Copy D – Optional copy used for payer’s records if needed.
- Copy E – Optional copy used for the recipient’s records if desired.
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