Bank didn't send a 1099INT?!

Posted by Taxlover on February 25, 2008, 5:41 pm

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I have a small checking account. In 2006 I got a 1099INT for $8.

This year I didn't get one. I called the bank, and they say they don't
issue them for less then $10. My last few statements don't show any
interest; possibly I didn't get any interest this year, but I don't really
know that.

Can I just forget about it? Apparently it is less than $10 and possibly $0;
and $10 would just be a rounding error on my actual taxes.
If they didn't send me one presumably they didn't send the IRS one either.
I really don't need any aggravation; either from the IRS for not reporting
it, or from the bank for refusing to send me one.

So, what do I do?

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Posted by Harlan Lunsford on February 25, 2008, 6:47 pm

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Taxlover wrote:

> I have a small checking account. In 2006 I got a 1099INT for $8.

> This year I didn't get one. I called the bank, and they say they don't

> issue them for less then $10. My last few statements don't show any

> interest; possibly I didn't get any interest this year, but I don't really

> know that.

> Can I just forget about it? Apparently it is less than $10 and possibly $0;

> and $10 would just be a rounding error on my actual taxes.

> If they didn't send me one presumably they didn't send the IRS one either.

> I really don't need any aggravation; either from the IRS for not reporting

> it, or from the bank for refusing to send me one.

> So, what do I do?

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

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Posted by BeanTownSteve on February 26, 2008, 6:15 pm

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> I have a small checking account. In 2006 I got a 1099INT for $8.

> This year I didn't get one. I called the bank, and they say they don't

> issue them for less then $10. My last few statements don't show any

> interest; possibly I didn't get any interest this year, but I don't really

> know that.

> Can I just forget about it? Apparently it is less than $10 and possibly $0;

> and $10 would just be a rounding error on my actual taxes.

> If they didn't send me one presumably they didn't send the IRS one either.

> I really don't need any aggravation; either from the IRS for not reporting

> it, or from the bank for refusing to send me one.

> So, what do I do?

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 $10) wasn't reported to the IRS.
They just wanted to save administrative expense, the cost of your
account being reported to the IRS is zero$.

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<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
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Posted by Harlan Lunsford on February 26, 2008, 7:24 pm

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BeanTownSteve wrote:

>> I have a small checking account. In 2006 I got a 1099INT for $8.

>> This year I didn't get one. I called the bank, and they say they don't

>> issue them for less then $10. My last few statements don't show any

>> interest; possibly I didn't get any interest this year, but I don't really

>> know that.

>> Can I just forget about it? Apparently it is less than $10 and possibly $0;

>> and $10 would just be a rounding error on my actual taxes.

>> If they didn't send me one presumably they didn't send the IRS one either.

>> I really don't need any aggravation; either from the IRS for not reporting

>> it, or from the bank for refusing to send me one.

>> So, what do I do?

> 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

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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
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Posted by BeanTownSteve on February 27, 2008, 11:30 am

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<SNIP>$.

> 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

<SNIP>

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!

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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>