Re: Form 1099 (interest income) from IRS?? [revised]

I just checked my 2006 tax return and sure enough the crytic 1099 form from the IRS was exactly the amount calculated as interest for my telephone excise tax refund on Form 8913.

It just struck me, but why in the world would they send a 1099? Isn't the purpose to notify the IRS? Don't they know already?

Or is it just their way of saying "gocha"? I wonder if what they'll recover in tax on those interest charges will be greater than the costs of creating and sending all those 1099.

Stu

Sure they already know it, so the real purpose is to let you know that they know it! ifyougetmydrift.

ChEAr$, Harlan

If that's the case, why not simply put a line on the tax form to add the interest to your income above the line?

I receved one of these and was just wondering how to claim it. Would it just be like a 1099-Int?

Yes, is this a trick question?

I assume the IRS refunded some tax and paid you interest?

I think the question is if this should be treated the same as a 1099- Int versus a 1099-G or a 1099-R or whatever. The form I received simply says 1099 and doesn't specify beyond that.

I received a 1099 for $13.09 bases upon a refund (interest they earned while they sat on my money). I just discovered this document, and I've already filed my 07 taxes. If I get audited, I'm goint to just tell them that "I'm sitting on it" and that "I'll gladly pay them interest on the $13" but thell get a 1099 from me".

========================================= MODERATOR'S COMMENT: Please delete unnecessary text from the prior message when responding.

I also received one of these forms and like you, " snipped-for-privacy@gmail.com" and it simply says "1099 (Rev. 9-07)" vertically along the left side of the top left box with no specification as to what kind of 1099 it was to be considered.

In the top left box, it says "Statement for Recipients of 'Interest Income' (Please keep this copy for your records)".

So, I'd like to ask without the sarcasm, I ask the same question " snipped-for-privacy@gmail.com" asked above, "Would it just be like a 1099-INT?"

Why in God's name would the IRS of ALL organizations not designate what type of

1099 it is? Is the "Interest Income" supposed to make one presume it is a 1099-INT? I'd like to get this right the first time as, yes, we were audited last year over something incredibly stupid as we followed all the rules/laws/code and we would like this issue to NOT us to be audited again. We were right and they held back our refund as a result.

So, we received interest on the refund as it was their mistake to hold back our money. I liken the experience to a rectal exam given by a med student with ADHD!

Any and all helpful responses are welcome.

Thank you!

A good answer to tax questions starting with "Why" is "Because."

The US Govt's Office of Personnel Management issues a for CSA-1099 or similar, which they use in place of a 1099-R to report pension income.

The IRS form equivalent to a 1099-INT is simple compared to the CSA-1099 thingie.

And for economy, look at the Railroad Retirement Board's RRB1099 or similar form. It's really two forms in one, which they call Tier I and Tier II. Tier I corresponds to Social Security benefits for line 20 and Tier II corresponds to pension benefits for line 16. And both are excluded from your state's income tax.

Trivia: Did you know that once upon a time the Railroad Retirement Board issued what we now call Social Security Numbers to their employees. They look and feel like SSNs but begin with a 7.

Which reminds me, I had a client with brand new baby last week, with an SSN starting with 8.

From SSA:

Social Security Number Randomization The Social Security Administration (SSA) changed the way Social Security Numbers (SSNs) are issued on June 25, 2011. This change is referred to as "randomization." The SSA developed this new method to help protect the integrity of the SSN. SSN Randomization will also extend the longevity of the nine-digit SSN nationwide.

The SSA began assigning the nine-digit SSN in 1936 for the purpose of tracking workers' earnings over the course of their lifetimes to pay benefits. Since its inception, the SSN has always been comprised of the three-digit area number, followed by the two-digit group number, and ending with the four-digit serial number. Since 1972, the SSA has issued Social Security cards centrally and the area number reflected the state, as determined by the ZIP code in the mailing address of the application.

There are approximately 420 million numbers available for assignment. However, the previous SSN assignment process limited the number of SSNs available for issuance to individuals by each state. Changing the assignment methodology extended the longevity of the nine digit SSN in all states. On July 3, 2007, the SSA published its intent to randomize the nine-digit SSN in the Federal Register Notice, Protecting the Integrity of Social Security Numbers [Docket No. SSA 2007-0046].

SSN randomization affected the SSN assignment process in the following ways:

It eliminated the geographical significance of the first three digits of the SSN, referred to as the area number, by no longer allocating the area numbers for assignment to individuals in specific states. It eliminated the significance of the highest group number and, as a result, the High Group List is frozen in time and can only be used to see the area and group numbers SSA issued prior to the randomization implementation date. Previously unassigned area numbers were introduced for assignment excluding area numbers 000, 666 and 900-999. These changes to the SSN may require systems and/or business process updates to accommodate SSN randomization.

Thanks all, and I do appreciate the trivia regarding SSNs. I used to be a pension administrator and quite often we'd have one plan which covered many states. As you may suspect, records for the employees quite often had the same SSN 1st 3 digits. I surmised that SSNs were definitely related to the participants' address at birth. In today's age though, the way people move from one location to another for work, I suspect the SSNs are a lot less common for a location of an employer.

Be that as it may, and I realize with my rambling I may have muddled the question, but, my main question was more centered around how I should treat the Form 1099 I received from the IRS. Should it be treated as a 1099-INT? It was for interest income, but, I want to make absolute sure that I'm doing this right as I'd rather avoid another audit this year.

Thank you all again for your help in advance!

WorkinMan

Yes, treat it as a Form 1099-INT with the amount of interest in box 1.

Bob Sandler

Thank you for the help! Onward and upward!

My husband received one of these forms too...from the same Payer's Federal Identification Number - I have no idea who it came from. I'm trying to see if I can find a lookup service for Federal ID numbers.

Identification Number - I have no idea who it came from. I'm trying to see if I can find a lookup service for Federal ID numbers.

The payer is the IRS itself. It's interest they paid on a tax refund.

/dan