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#1987445 - 01/08/15 09:14 PM HELP! - Aggregating Interest on 1099INT
Anonymous
Unregistered

Coming back from vacation and I'm having my brain shut down. I'm being contacted by one of our vendors stating that our tax reporting appears incorrect and way too many 1099-INTs are being generated. In reviewing the documents being sent and getting with our core provider it appears we are doing an aggregate of interest. For example, Bob earns $5 on his savings and $5.01 on his Money Market, we are sending a 1099-INT declaring $10.01 in interest. Our vendor seems to think this is incorrect, any advice would be greatly appreciated. I tried to look on the IRS website and searching around but couldn't find a clear answer.

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#1987455 - 01/08/15 09:41 PM Re: HELP! - Aggregating Interest on 1099INT Anonymous
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,225
Galveston, TX
You don't have to look any farther than the first page of the instructions:

Specific Instructions for Form 1099-INT

File Form 1099-INT, Interest Income, for each person:

1. 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, later),

It does not say each account - it says each person.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1987875 - 01/12/15 03:13 PM Re: HELP! - Aggregating Interest on 1099INT Anonymous
Anonymous
Unregistered

OK...Bob earns $5 on his savings account, and the mailing address on that account is home address; Bob earns $5.01 on his money market, and his mailing address for that account is his
P O Box. Although the social security number would be the same, there would be 2 1099 records and mailings, because of the 2 addresses. Unless the software can aggregate by social security number on the data transmission to the IRS, it seems that there would be a potential loophole in that you could have 2 separate records which lists interest payments of less than $10. Any experience with any such issues and how is your vendor handling it? Thank you.

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