Form 1099-INT, Interest Income
Form 1099-INT, Interest Income, is a yearly tax statement provided by payers of interest income that summarizes income of more than $10 from interest along with associated expenses. The information on Form 1099-INT is provided to both the payee and the IRS.
Form 1099- INT Flow
Use the following flow diagram to learn more about the filing process & the various due dates for each filing requirement.
Banking or other Financial Institutions
Depends on each state
Due Dates for Tax Year 2016
Provide 2016 Form 1099 to all Recipients
Paper Filing Deadline to send the 2016 Form 1099
E-file Deadline for 2016 IRS
Who needs to file Form 1099-INT?
File Form 1099-INT, Interest Income, for each person:
- To whom you paid amounts reportable in boxes 1, 3, and 8 of at least $10 (or at least $600 of interest paid in the course of your trade or business described in the instructions for Box 1. Interest Income),
- For whom you withheld and paid any foreign tax on interest, or
- From whom you withheld (and did not refund) any federal income tax under the backup withholding rules regardless of the amount of the payment.
Report only interest payments made in the course of your trade or business including federal, state, and local government agencies and activities deemed nonprofit, or for which you were a nominee/ middleman. Report tax-exempt interest only on Form 1099-INT.
Where do I file Form 1099-INT?
If you are filing 250 or more returns you are required to file electronically. The IRS encourages you to file electronically even if you are filing less than 250 returns. ExpressTaxFilings.com is the easiest way to file - we transmit everything to the IRS for you! Or, you can print paper copies and mail them to the IRS and your recipients. To find the mailing address and other detailed Form 1099-INT information, visit https://www.irs.gov/pub/irs-pdf/f1099int.pdf
Steps to e-file Form 1099-INT
- Sign In to your account
- Select to Start a New 1099-INT
- Select Payer details (Name, EIN, Address)
- Select a Recipient (Name, SSN/EIN, Address)
- Enter Federal Details for Interest Income Including Boxes 1-10 of the Form 1099-INT
- Enter State Information & State Taxes Witheld for each applicable state
- Review Your Order & Select whether you would like the Form mailed to the recipient.
- Add Credit Card for the Filing Fees
- E-file the Form 1099-INT with the IRS
Have a lot of 1099-INT forms to send out?
Use our "Bulk Upload" feature to upload an Excel/CSV file to create 1099-INT forms in minutes. You can download our Excel template or use your own customized template for this.
Penalties for failing to file Form 1099-INT
If you fail to file a correct information return by the due date and you cannot show reasonable cause, you may be subject to a penalty. The penalty applies if you fail to file timely, you fail to include all information required to be shown on a return, or you include incorrect information on a return.
The penalty also applies if you file on paper when you were required to file electronically, you report an incorrect TIN or fail to report a TIN, or you fail to file paper forms that are machine readable.
The amount of the penalty is based on when you file the correct information return. The penalty is:
- $30 per information return if you correctly file within 30 days (by March 30 if the due date is February 29); maximum penalty $250,000 per year ($75,000 for small businesses*).
- $60 per information return if you correctly file more than 30 days after the due date but by August 1; maximum penalty $500,000 per year ($200,000 for small businesses*).
- $100 per information return if you file after August 1 or you do not file required information returns; maximum penalty $1,500,000 per year ($500,000 for small businesses*).
*Small businesses—lower maximum penalties. You are a small business if your average annual gross receipts for the 3 most recent tax years (or for the period you were in existence, if shorter) ending before the calendar year in which the information returns were due are $5 million or less.