1099-INT is the official form issued by all payers of interest income to investors at year's end. Form 1099-INT breaks down all types of interest income and related expenses. Payers must issue Form 1099-INT for any party to whom they paid at least $10 of interest during the year from activity such as interest accrued from a savings account.
File Form 1099-INT for each recipient under the following conditions:
1. Payer Details: Name, TIN, and Address
2. Recipient Details: Name, TIN/Social Security Number, and Address
3. Federal Details: Federal Interest Income and Federal Tax Withheld
4. State Filing Details:State Income, Payer State Number, and State Tax Withheld
You are not required to file Form 1099-INT for payments made to certain payees including but not limited to a corporation, a tax-exempt organization, any IRA, Archer MSA, Medicare Advantage MSA, health savings account (HSA), a U.S. agency, a state, the District of Columbia, a U.S. possession, a registered securities or commodities dealer, nominees or custodians, brokers, or notional principal contract (swap) dealers.
You are not required to file Form 1099-INT for interest on an obligation issued by an individual, interest on amounts from sources outside the United States paid outside the United States by a non-U.S. payer or non-U.S. middleman, certain portfolio interest, interest on an obligation issued by an international organization and paid by that organization, and payments made to a foreign beneficial owner or foreign payee.
Do not report tax-deferred interest, such as interest that is earned but not distributed from an IRA.
If you are reporting interest and original issue discount (OID) on any obligation, you may report both the taxable interest and the OID on Form 1099-OID. It is not necessary to file both Forms 1099-INT and 1099-OID.
For more information visit: https://www.irs.gov/instructions/i1099int/index.html
| Filing Type | Due Date |
| Recipient Copy | Jan 31, 2024 |
| IRS eFile | April 01, 2024 |
| IRS Paper Filing | Feb 28, 2024 |
1. What are forms 1099-INT copies?
The Form 1099-INT has five copies that the payer needs to complete when filing by paper, if using a platform like Tax1099 these will be generated and stored for you:
1. Copy A: This copy is filed with the IRS.
2. Copy 1: This copy is filed with the State tax department.
3. Copy B: This copy is given to the recipient.
4. Copy 2: This copy is filed with the recipient's state income tax return if required.
5. Copy C:This copy is for the payer's record.
These copies serve different purposes, including reporting to the IRS, state tax department, providing documentation to the recipient, and maintaining records for the payer.
2. What are the penalties imposed by the IRS for late filing of Form 1099-INT?
The IRS enforces penalties for various reasons related to the filing of 1099-INT Forms. These include:
If the filing of a 1099-INT Form is late for less than 30 days, the penalty amounts to $60 per form. The penalty increases to $120 per form if the filing is more than 30 days overdue. For more details on 1099-INT penalties, you can refer to the provided link.
3. What are the primary mistakes frequently encountered while completing Form 1099-INT?
The two prevailing errors often found during the submission of Form 1099-INT include inaccuracies in the amount(s), code, or checkbox, and the absence of a valid payee TIN (SSN, EIN, QI-EIN, or ITIN), or errors in the payee TIN/Name.