IRS Form 1099-INT

irs form 1099-int
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Everybody knows that there exists a great variety of tax forms. Most of them are objectively complex, lengthy, and require thorough research before completion. To simplify the filling subsequent submission process for you, the IRS has developed detailed descriptions of all questionable forms-related issues. Comprehensive guides leading you through completing these papers are presented on the IRS official website.

In this article, you will find some introductory information about Form 1099-INT, along with a comparably easy-to-apply set of step-by-step instructions. Still, do not hesitate to contact a legal specialist to get a consultation concerning any questions that might occur. Errors may result in the return of the document for correction.

Why Does One Need Form 1099-INT?

The Interest Income Form is supposed to be filed to inform the IRS about your interest payments. You need to supply such a report if you are involved in the trade or business activity and refer to one of these US citizens categories:

  • An individual you paid a certain amount of money subject for the report under sections 1, 3, and 8 of the Form worth at least $10;
  • A person for whom you did withhold or pay any foreign tax on interest;
  • A US resident from whom you withheld federal income tax that you have never refunded (regardless of the payment amount). This particular situation is regulated under the US backup withholding rules.

Several other copies of this paper should be prepared for:

  • State Tax Department;
  • IRS Center;
  • Recipient (two of them);
  • And Payer.

Form Completion

This document consists of fillable boxes, each of which should not be left blank. If you decide to obtain a template through the official IRS website, you will see that Copy A, which appears in red, is not allowed to be filed (this will lead to legal punishment). However, the official printed version is scannable. Other copies are downloadable and printable. You may also wish to use our form-building software and complete the document electronically. Do not forget to create a payer’s statement if you are the one filling out this form.

  • Provide the Payer’s Essential Data

The first field of this document will contain the taxpayer’s full legal name, complete residential address, ZIP or foreign postal code, and a daytime telephone number you can be reached at.

step 1 provide the payer’s essential data - filling out an irs form 1099-int

  • Input the Payer’s RTN

RTN stands for routing and transit number. Inserting one is not obligatory. You may wish to indicate your RTN if your company intends to take part in the direct deposit of refunds program.

step 2 input the payer’s rtn - filling out an irs form 1099-int

  • Enter the Payer’s TIN

TIN stands for a tax identification number and is a nine-digit code.

step 3 enter the payer’s tin - filling out an irs form 1099-int

  • Insert the Recipient’s TIN

The recipient has to be identified by the IRS as a taxpayer as well.

step 4 insert the recipient’s tin - filling out an irs form 1099-int

  • Indicate the Payee’s Basic Info

The payer must fill in their full legal name and mailing address (including state, county, city, street, ZIP code (or a foreign postal code, if applicable). Submit the relevant info in the respective boxes (as shown in the picture).

step 5 indicate the payee’s basic info - filling out an irs form 1099-int

  • Check the FATCA Filing Requirement Box

One has to checkbox this option if they represent an FFI and report payments to a US account. If you are a US citizen or a business unit’s owner acting on its behalf, create this form and check the corresponding box.

step 6 check the fatca filing requirement box - filling out an irs form 1099-int

  • Provide Account Number

Not everyone should do that. However, if you have checked the box hereupon or own several accounts for the payee, you must not leave this field blank.

step 7 provide account number - filling out an irs form 1099-int

  • Specify the Interest Income Amount

Hereunder, you must Indicate the sum that you did not include in box 3 (at least $10). No additional description is required here.

step 8 specify the interest income amount - filling out an irs form 1099-int

  • Enter the Early Withdrawal Penalty

The amount of interest caused by an early withdrawal of a time deposit is provided in this part of the form. Please refer to the picture below to do that correctly.

step 9 enter the early withdrawal penalty - filling out an irs form 1099-int

  • Input Interest on the US Saving Bonds (or Similar Obligations)

In the part of the 1099-INT Form, the applicant needs to indicate all requested info on the bills, bonds, and notes referring to the Treasury. If you have performed interest payments in one of the above segments, please indicate the amount in US dollars.

step 10 input interest on the us saving bonds (or similar obligations) - filling out an irs form 1099-int

  • Insert Backup Withholding

This amount should be only specified in certain situations. For instance, if the payee has not provided you with a correct TIN.

step 11 insert backup withholding - filling out an irs form 1099-int

  • Indicate Investment Expenses

Please pay special attention to this amount, as it is not deductible.

step 12 indicate investment expenses - filling out an irs form 1099-int

  • Provide the Foreign Tax Amount Paid

If you are currently paying foreign taxes on interest, ensure to insert the respective amount in US dollars.

step 13 provide the foreign tax amount paid - filling out an irs form 1099-int

  • Enter the Foreign Company’s Name

After completing the previous boxes, specify the entity for which the foreign tax was paid.

step 14 enter the foreign company’s name - filling out an irs form 1099-int

  • Insert Tax-Exempt Interest

Indicate the tax-free interest that is not OID of $10 or a bigger sum (if applicable).

step 15 insert tax-exempt interest - filling out an irs form 1099-int

  • Type the Specified Private Activity Bond Interest

Refer to Section 141 to fill out this particular field. This type of bond means that you have to provide (or repeat) any private activity bond info that you have defined in Section 141.

step 16 type the specified private activity bond interest - filling out an irs form 1099-int

  • Insert Market Discount and Bond Premium

You need to enter all the necessary bond-related information in this section. They require you to provide the current amount of income and indebtedness that you have obtained during the current financial year and use this data for tax purposes; so, ensure to provide the most accurate and up-to-date info.

step 17 insert market discount and bond premium - filling out an irs form 1099-int

  • Complete Additional Bond Premium Info

In boxes 12 and 13, provide data about the bond premium for a US treasury obligation and

tax-exempt covered security.

step 18 complete additional bond premium info - filling out an irs form 1099-int

  • Enter the CUSIP Number

Here, one should provide the indicated number of single bonds or valid accounts containing a single bond. Fill out the blank slots as shown in the picture.

step 19 enter the cusip number - filling out an irs form 1099-int

  • Complete State Information

You only need to fill out these boxes if you are a participant in the Combined Federal/State Filing program. If you are not part of either of those, leave the boxes empty.

step 20 complete state information - filling out an irs form 1099-int
The form appears to be complicated, and certain knowledge of the terms and procedures is required to guarantee the success of the operation. We recommend using automatic form-building software you can obtain on our official website.