USA 1099-Int - Do I Issue??

[mc0624]

I've search high and low and cannot seem to find a solid answer.

We have a corp that has several short-term convertible notes. We have accrued the interest due to each note holder's note payable accounts for each quarter of 2015. The notes mature in 2016.

I was told and have read several places, that the accrued interest is to be reported on a 1099-Int for 2015. One note holder is saying that because they did not actually receive the interest yet, it should not.

Like I mentioned, I've found several sources that say "even when credited" a 1099-Int should be issued.

Anyone know????

 

[kirby]

You are correct in that the instructions for 1099 INT say "paid or credited" BUT the instructions FURTHER define "credited BY whom" and they ONLY list financial institutions there.
This means - if the BANK CREDITS your bank account with interest - and therefore you could have gotten your paws on it - then you've been paid and that is reportable on 1099.
In your case as a corp that is NOT happening. So your accrued interest is not reported until actually paid. To be sure - re-read the instructions for 1099 INT or consult with your CPA.