Bank didn't send a 1099INT?!

LOok at your year end bank statement which will show interest year to date. the fact that no 1099 INT be issued does not relieve one of reporting income, even 2$ worth; or 8.

ChEAr$, Harlan Lunsford, EA n LA

Report what you earned. If $10 amounts to a rounding error (I'm having trouble with that) on your return, is $10 worth attracting attention to the rest of your return? Because you did not get a 1099, I would not count on that to be mean it (the less than $10) wasn't reported to the IRS. They just wanted to save administrative expense, the cost of your account being reported to the IRS is zero$.

That's not quite right. In addition to not sending a 1099INT, they are not required to even report it to IRS. And they don't. But as noted in an above post, any amount over 49 cents is taxable.

ChEAr$, Harlan Lunsford, EA n LA

$.

Would the bank actually go to the bother of eliminating the small amounts? Seems that the programming and coincident possibility of error and NOT reporting something that should be included, would make that unlikely. Also easier to verify the report is accurate if you don't eliminate things - easier reconcile.

My guess, and it's only a guess, is that they would prepare the file transmission to the IRS so that it includes all paid interest amounts to account holders.

Still should file/claim even the small amounts regardless. I'm in the "don't poke sticks at the big dog" camp!

Yes, since the IRS seems to require it. The publications on the IRS Web site state that 1099-INT interest of $10 or more should be reported to the IRS. The implication, although I cannot find it stated explicitly anywhere, is that interest of less than $10 should NOT be reported. I imagine that there are a hell of a lot of bank accounts whose annual interest falls under teh $10 threshold, and the IRS doesn't want to deal with all that extra data.

Seems like it's awfully easy to add a "WHERE SUM(interest_paid) >= 10" to the SQL statement that generates reporting data and forms :-).

Any 1099 data reported to the IRS must also be reported to the payees. They can't report interest to the IRS and then decide not to send out 1099-INT's to some account-holders.

I set up an online account with the bank and looked over several 2007 statements to see what interest was paid. Doesn't seem to have been any; so the issue is moot. Interesting, but moot.

Maybe someday I will look into why I got interest in 2006 but not 2007.

Rest assured that if not required, i.e. less than 10$, banks won't include in their annual submissions.

In practice I used to see 1099-int for amounts less than 10$, but in last several years, nothing.

If I WERE IN CHARGE!....... all interest amounts would be reportable to IRS, if for no other reason, to keep taxpayers in mind that all income must be reported.

ChEAr$, Harlan Lunsford, EA n LA