1099-INT


G

George Nuetzel

I didn't receive a 1099-INT for a checking account at my bank. I
stopped in the bank to find out why I didn't get one. (First, keep in
mind this bank does not employ the smartest people in the world). They
told me since the interest was under $10, they do not have to report it,
and therefore I don't have to pay taxes on it.

I immediately got in touch with the IRS to verify this information. The
bank had it partially right; they still have to submit it to IRS and
they are not required to mail a copy to me if it is under $10. And,
yes, I do have to pay taxes on it. I asked how long this rule has been
in effect and was told it has been in place for some time.
Unfortunately, the 1040 form/booklet does not mention this.

To verify this, go to:

http://www.irs.gov/pub/irs-pdf/i1099gi3.pdf

Look at page 16.

George
 
Ad

Advertisements

J

John A. Weeks III

George Nuetzel said:
I didn't receive a 1099-INT for a checking account at my bank. I
stopped in the bank to find out why I didn't get one. (First, keep in
mind this bank does not employ the smartest people in the world).
Of course they don't. If they had a staff full of rocket scientists,
they would have to pay rocket scientist wages to keep them. When
you pay $8 per hour, you get $8 per hour people most of the time.
Expecting anything else would be unrealistic.
They
told me since the interest was under $10, they do not have to report it,
and therefore I don't have to pay taxes on it.
Of course you have to pay tax on it. Just because it isn't reported
doesn't mean that it isn't taxable income.
I immediately got in touch with the IRS to verify this information. The
bank had it partially right; they still have to submit it to IRS and
they are not required to mail a copy to me if it is under $10.
Other 1099's have similar rules. For example, the 1099-Misc
doesn't need to be sent if the annual total is less than $600.
I asked how long this rule has been
in effect and was told it has been in place for some time.
Unfortunately, the 1040 form/booklet does not mention this.
The tax code has hundreds of thousands of pages, so there is no way
that the 1040 booklet could cover everything. Again, expecting
otherwise is unrealistic.

-john-
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads

1099-INT 5
1099-INT 4
$0.00 on 1099-INT 2
1099-INT Record 4
1099-INT - Joint account 4
1099-INT Copy C 5
nominee interest 1099-INT 0
USA 1099-Int - Do I Issue?? 1

Top