[Taxlover]

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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Archived from group: misc>taxes>moderated

[Harlan Lunsford]

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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[BeanTownSteve]

On Feb 25, 5:41 pm, "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?
>
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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[Harlan Lunsford]

BeanTownSteve wrote:
> On Feb 25, 5:41 pm, "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?
>>
> 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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[BeanTownSteve]

$.
>
> That's not quite right. In addition to not sending a 1099INT, they
> are not required to even report it to IRS. And they don't.
> But as noted in an above post, any amount over 49 cents is taxable.
>
> ChEAr$,
> Harlan Lunsford, EA n LA


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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[Jonathan Kamens]

BeanTownSteve writes:
>Would the bank actually go to the bother of eliminating the small
>amounts?

Yes, since the IRS seems to require it. The publications on
the IRS Web site state that 1099-INT interest of $10 or more
should be reported to the IRS. The implication, although I
cannot find it stated explicitly anywhere, is that interest
of less than $10 should NOT be reported. I imagine that
there are a hell of a lot of bank accounts whose annual
interest falls under teh $10 threshold, and the IRS doesn't
want to deal with all that extra data.

>Seems that the
>programming and coincident possibility of error and NOT reporting
>something that should be included,
>would make that unlikely.

Seems like it's awfully easy to add a "WHERE
SUM(interest_paid) >= 10" to the SQL statement that generates
reporting data and forms .

>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.

Any 1099 data reported to the IRS must also be reported to the
payees. They can't report interest to the IRS and then decide
not to send out 1099-INT's to some account-holders.

--
Help stop the genocide in Darfur!
http://www.genocideintervention.net/

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[Taxlover]

"Taxlover" wrote in message $7d1.478@news01.roc.ny...
>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?
I set up an online account with the bank and looked over several 2007
statements to see what interest was paid. Doesn't seem to have been any; so
the issue is moot. Interesting, but moot.

Maybe someday I will look into why I got interest in 2006 but not 2007.

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[Harlan Lunsford]

Jonathan Kamens wrote:
> BeanTownSteve writes:
>> Would the bank actually go to the bother of eliminating the small
>> amounts?
>
> Yes, since the IRS seems to require it. The publications on
> the IRS Web site state that 1099-INT interest of $10 or more
> should be reported to the IRS. The implication, although I
> cannot find it stated explicitly anywhere, is that interest
> of less than $10 should NOT be reported. I imagine that
> there are a hell of a lot of bank accounts whose annual
> interest falls under teh $10 threshold, and the IRS doesn't
> want to deal with all that extra data.
>
>> Seems that the
>> programming and coincident possibility of error and NOT reporting
>> something that should be included,
>> would make that unlikely.
>
> Seems like it's awfully easy to add a "WHERE
> SUM(interest_paid) >= 10" to the SQL statement that generates
> reporting data and forms .
>
>> My guess, and it's only a guess, is that they would prepare the file
>> transmission to the IRS so that it includes all
>> paid interest amounts to account holders.
>
> Any 1099 data reported to the IRS must also be reported to the
> payees. They can't report interest to the IRS and then decide
> not to send out 1099-INT's to some account-holders.
>
Rest assured that if not required, i.e. less than 10$, banks won't
include in their annual submissions.

In practice I used to see 1099-int for amounts less than 10$, but in
last several years, nothing.

If I WERE IN CHARGE!....... all interest amounts would be reportable
to IRS, if for no other reason, to keep taxpayers in mind that all
income must be reported.

ChEAr$,
Harlan Lunsford, EA n LA

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