Example: If filing both 1099-INT
and 1099-DIV forms, two 1096 forms would be required.
for interest payments and Form 1099-DIV for dividend payments) has been used for many years to simultaneously report to the IRS and payment recipients the amount that payment recipients received in a given calendar year.
At the end of the year, we issue a 1099-INT
to members who have won prizes.
Business taxpayers have to determine not only if a payment is subject to reporting, but also on which of the numerous forms (1099-MISC, 1099-INT
, 1099-C, etc.
Among the other information returns it included was a Form 1099-INT
reporting $60,292 interest income from the same partnership swap transaction.
Payments of interest and dividends (reported on IRS Forms 1099-INT
, 1099-DIV, 1099-OID and 1099-PATR).
1099-DIV and 1099-INT
, which reflect dividends and interest payments made to you
In my last column (November 2007), we discussed the definitions of "interest" and "bonus" under both deposit regulations and Internal Revenue Service (IRS) roles to determine what is reported to the IRS on a Form 1099-INT
For the sake of our inquiry, let's say that within the span of one year each borrower receives 17 mailings: one privacy notice, one 1098, one 1099-INT
form, one escrow analysis, a coupon book or 12 monthly statements, and one private mortgage insurance/mortgage insurance protection (PMI/MIP) annual disclosure.
Current income tax regulations provide that any person who pays interest totaling $10 or more in a given year to any other person must file a Form 1099-INT
5The Discounted Premium Credit being transferred to the policy is considered interest paid to the policy holder and will generate a 1099-INT
for the policy holder (Consult with a tax advisor).
The amounts reported in Box 13 of Form 1099-INT
should now be included in box 5 of Form 1096 when filing Form 1099-INT
to the IRS.