Form 1099-INT shows bond interest on line 1. Why does this form have no place to record the accrued interest that is paid by the taxpayer at the time the bond is purchased? Doesn't the accrued interest paid up front get to reduce your interest income received?
To me it is perplexing why form 1099 doesn't give the broker a place to just report this accrued interest and net it up with interest received. It seems to me they are counting on the taxpayer not understanding that she paid accrued interest and therefore artificially boosting the taxable interest income.