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1099-INT Requirements

    Deadlines

    • Amounts reported on Form 1099-INT must be furnished to the taxpayer by Jan. 31 and the IRS by Feb. 28 if filing paper forms and March 31 if filing electronically. If filing paper forms, Copy A for each taxpayer must be sent to the IRS, accompanied by a Form 1096, known as the Annual Summary and Transmittal of U.S. Information Returns. An automatic 30-day extension is available to filers by completing IRS Form 8809, Application for Extension of Time to File Information Returns. The IRS specifies that no explanation is required to qualify for the extra 30 days.

    Substitute Forms

    • Tax-code regulations require that all agencies and businesses that must file the Form 1099-INT also must provide a statement to the recipient of the interest. This is usually done by sending the taxpayer a copy of the actual 1099-INT. Substitutes must abide by the rules outlined in IRS Publication 1179, revised annually, which states that for Form 1099, the substitute statement must include the same information as the official form, including coinciding box numbers and headings. In addition, the substitute form must include a notice, rendered in bold-face type informing the recipient that the information contained therein is being reported to the IRS.

    Multiple Accounts

    • If a taxpayer holds more than one account that earns interest with the same business or agency, the reporting party must include a distinct account number on each Form 1099-INT. For example, if a taxpayer has an interest-bearing checking account, a passbook savings account and several certificates of deposit with one bank and the bank sends multiple 1099 forms for clarity, a distinct account number should be recorded on each form. In this example, the bank's internal account numbers associated with each deposit account would suffice.

    Electronic Filing

    • Businesses and agencies who file 250 or more 1099-INT forms must file electronically. Approval must be received prior to filing electronically the first time. Once approved by the IRS, the filer does not have to reapply annually.

    Penalties

    • Persons required to file information returns are subject to penalties if the forms are not filed in a timely manner. Starting at $30 per form, penalty amounts can aggregate to more than $1 million in large businesses required to file multiple forms that fail to do so. Penalties also are imposed for willful neglect to furnish the taxpayer with a copy of the statement in a timely manner.



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