Federal Form 1099-Int Instructions
For the latest information about developments related to
Forms 1099-INT and their instructions,
such as legislation enacted after they were published, go
New reporting requirements. There are new reporting
requirements for a debt instrument that is a covered
security under Regulations section 1.6045-1(a)(15)(i)(C)
and that is acquired by a taxpayer with market discount,
bond premium, or acquisition premium. See TD 9616,
available at www.irs.gov/irb/2013-20_IRB/ar07.html. For
more information, see the instructions for boxes 10 and 11
under Specific Instructions for Form 1099-INT and the
instructions for boxes 5 and 6 under Specific Instructions
for Form 1099-OID, later.
General Instructions. In addition to these specific
instructions, you should also use the 2014 General
Instructions for Certain Information Returns. Those
general instructions include information about the
- Who must file (nominee/middleman).
When and where to file.
Electronic reporting requirements.
Corrected and void returns.
Statements to recipients.
Taxpayer identification numbers.
Other general topics.
You can get the general instructions at
by calling 1-800-TAX-FORM (1-800-829-3676).
Nonresident aliens. If you pay U.S. bank deposit
interest of at least $10 to certain nonresident alien
individuals, report the interest on Form 1042-S, Foreign
Person's U.S. Source Income Subject to Withholding. To
determine whether an information return is required for
original issue discount, see Regulations 1.6049-5(f) and
1.6049-8(a). This interest may be subject to backup
withholding. See the Instructions for Form 1042-S. Also
see Rev. Proc. 2012-24, 2012-20 I.R.B. 913, available at
Specific Instructions for Form
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, later),
- For whom you withheld and paid any foreign tax on
- 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 that is not original issue discount
(OID) on Form 1099-INT. You do not need to report
tax-exempt interest that is OID. Report interest that is
taxable OID in box 1 or 8 of Form 1099-OID, Original
Issue Discount, not on Form 1099-INT. Report
exempt-interest dividends from a mutual fund or other
regulated investment company (RIC) on Form 1099-DIV.
Exceptions to reporting. No Form 1099-INT must be
filed for payments made to exempt recipients or for
interest excluded from reporting.
Exempt recipients. You are not required to file Form
1099-INT for payments made to certain payees including
but not limited to a corporation, a tax-exempt organization,
any IRA, Archer MSA, Medicare Advantage MSA, health
savings account (HSA), a U.S. agency, a state, the District
of Columbia, a U.S. possession, a registered securities or
commodities dealer, nominees or custodians, brokers, or
notional principal contract (swap) dealers. For additional
exempt recipients, see Regulations section 1.6049-4 for
Interest excluded from reporting. You are not
required to file Form 1099-INT for interest on an obligation
issued by an individual, interest on amounts from sources
outside the United States paid outside the United States
by a non-U.S. payer or non-U.S. middleman, certain
portfolio interest, interest on an obligation issued by an
international organization and paid by that organization,
and payments made to a foreign beneficial owner or
foreign payee. See Regulations section 1.6049-5 for more
Other exception. Do not report tax-deferred interest,
such as interest that is earned but not distributed from an
When is a payment made? Generally, interest is paid
when it is credited or set apart for a person without any
substantial limitation or restriction as to the time, manner,
or condition of payment. The interest must be made
available so that it may be drawn on at any time and its
receipt brought within the control and disposition of the
For payments made on obligations subject to
transactional reporting (for example, savings bonds,
interest coupons, and other demand obligations), interest
is paid at the time the obligation is presented for payment.
For example, interest on a coupon detached from a bond
is paid when it is presented for payment.
For rules regarding when interest earned by a trust
interest holder (TIH) in a widely held fixed investment trust
(WHFIT) is reportable, see Regulations section 1.671-5.
Reporting interest and OID. If you are reporting interest
and original issue discount (OID) on any taxable
obligation, you may report both the taxable qualified
stated interest and the OID on Form 1099-OID. It is not
necessary to file both Forms 1099-INT and 1099-OID. On
Form 1099-OID, report the qualified stated interest in
box 2 and the OID in box 1 or 8. However, you may
choose to report the qualified stated interest on Form
1099-INT and the OID on Form 1099-OID.
Reporting interest and bond premium. For a covered
security acquired with bond premium, you must report the
amount of bond premium amortization for the tax year.
See Regulations section 1.6045-1(a)(15)(i)(C) to
determine if a debt instrument is a covered security.
However, in the case of a taxable bond, if you have been
notified by the taxpayer that the taxpayer does not elect to
amortize bond premium, you must not report any amount
of bond premium amortization. See Regulations section
If you are required to report the amount of bond
premium amortization for the tax year, you may report
either (1) a net amount of interest that reflects the offset of
interest by the amount of bond premium amortization for
the year or (2) a gross amount for both the interest and the
bond premium amortization for the year. For example, if a
taxpayer receives $20 of taxable interest from a corporate
bond and the amount of bond premium amortization for
the year is $2, you may report $18 of interest income in
box 1 and $0 in box 11, or you may report $20 of interest
income in box 1 and $2 in box 11. For a noncovered
security acquired with bond premium, you are only
required to report the gross amount of interest.
Statements to recipients. If you are required to file
Form 1099-INT, you must furnish a statement to the
recipient. For more information about the requirement to
furnish an official form or acceptable substitute statement
to recipients, see part M in the 2014 General Instructions
for Certain Information Returns. If you have furnished
Forms 1099-INT to a recipient for amounts received
during the year at the time of the transactions, such as you
might have done for window transactions, do not include
these same amounts in a Form 1099-INT furnished to the
same recipient for other payments during the year.
Truncating recipient's identification number on paper payee statements. Pursuant to proposed
regulations §301.6109-4 (REG-148873-09), all filers of
Form 1099-INT may truncate a recipient's identification
number (social security number (SSN), individual
taxpayer identification number (ITIN), or adoption
taxpayer identification number (ATIN)) on payee
statements. See part M in the 2014 General Instructions
for Certain Information Returns.
Account number. The account number is required if you
have multiple accounts for a recipient for whom you are
filing more than one Form 1099-INT. Additionally, the IRS
encourages you to designate an account number for all
Forms 1099-INT that you file. See part L in the 2014
General Instructions for Certain Information Returns.
2nd TIN not. You may enter an "X" in this box if you were
notified by the IRS twice within 3 calendar years that the
payee provided an incorrect taxpayer identification
number (TIN). If you mark this box, the IRS will not send
you any further notices about this account. However, if
you received both IRS notices in the same year, or if you
received them in different years but they both related to
information returns filed for the same year, do not check
the box at this time. For purposes of the two-notices-in-3-years rule, you are considered to have
received one notice. You are not required to send a
second "B" notice upon receipt of the second notice. See
part N in the 2014 General Instructions for Certain
Information Returns for more information.
TIP. For information on the TIN Matching System
offered by the IRS, see Items You Should Note in
the 2014 General Instructions for Certain
Payer's RTN (optional). If you are a financial institution
that wishes to participate in the program for direct deposit
of refunds, you may enter your routing and transit number
Box 1. Interest Income
Enter interest not included in box 3. Include amounts of
$10 or more, whether or not designated as interest, that
are paid or credited to the person's account by savings
and loan associations, mutual savings banks not having
capital stock represented by shares, building and loan
associations, cooperative banks, homestead
associations, credit unions, or similar organizations.
Include interest on bank deposits, accumulated dividends
paid by a life insurance company, indebtedness (including
bonds, debentures, notes, and certificates other than
those of the U.S. Treasury) issued in registered form or of
a type offered to the public, or amounts from which you
withheld federal income tax or foreign tax. In addition,
report interest of $10 or more attributable to a TIH of a
WHFIT, or accrued by a real estate mortgage investment
conduit (REMIC), a financial asset securitization
investment trust (FASIT) regular interest holder, or paid to
a collateralized debt obligation (CDO) holder, as
Also include interest of $600 or more paid in the course
of your trade or business not meeting the above criteria,
such as interest on delayed death benefits paid by a life
insurance company, interest received with damages,
interest on a state or federal income tax refund, or interest
attributable to a swap with significant nonperiodic
Include in box 1 any accrued qualified stated interest
on bonds sold between interest dates (or on a payment
date). Also show OID on short-term obligations of 1 year
or less and interest on all bearer certificates of deposit.
Do not include in box 1 interest on tax-free covenant
bonds or dividends from money market funds (which are
reportable on Form 1099-DIV). Do not include any
description in box 1.
Interest to holders of tax credit bonds. Report tax
credits in amounts of $10 or more allowed from the
following tax credit bonds.
- Clean renewable energy bonds.
New clean renewable energy bonds.
Qualified energy conservation bonds.
Qualified zone academy bonds.
Qualified school construction bonds.
Build America bonds (Tax Credit).
Treat these amounts as paid on the credit allowance date.
The credit allowance dates are March 15, June 15,
September 15, December 15, and the last day on which
the bond is outstanding. For bonds issued during the
3-month period ending on a credit allowance date and for
bonds which are redeemed or mature, the amount of the
credit is determined ratably based on the portion of the
3-month period during which the bond is outstanding.
Generally, interest paid is not required to be reported to
the list of recipients below. However, if they are holders of
the tax credit bonds listed above, the interest must be
- A corporation,
A dealer in securities or commodities required to
register as such under the laws of the United States, a
state, the District of Columbia, or a possession of the
A real estate investment trust (REIT) as defined in
An entity registered at all times during the tax year
under the Investment Company Act of 1940,
A common trust fund as defined in section 584(a), or
Any trust which is exempt from tax under section
Box 2. Early Withdrawal Penalty
Enter interest or principal forfeited because of an early
withdrawal of time deposits, such as an early withdrawal
from a certificate of deposit (CD), that is deductible from
gross income by the recipient. Do not reduce the amount
reported in box 1 by the amount of the forfeiture. For
detailed instructions for determining the amount of
forfeiture deductible by the depositor, see Rev. Ruls.
75-20, 1975-1 C.B. 29, and 75-21, 1975-1 C.B. 367.
Box 3. Interest on U.S. Savings Bonds and
Enter interest on U.S. Savings Bonds, Treasury bills,
Treasury notes, and Treasury bonds. Do not include in
If you make payment on a U.S. Savings Bond or other
U.S. obligation on which interest is reportable, enter your
name, address, and federal identification number on Form
1099-INT and Form 1096, Annual Summary and
Transmittal of U.S. Information Returns, not those of the
U.S. Treasury Department or the Bureau of Public Debt.
Box 4. Federal Income Tax Withheld
Enter backup withholding. For example, if a recipient does
not furnish its TIN to you in the manner required, you must
backup withhold at a 28% rate on payments required to be
reported in box 1 (which may be reduced by the amount
reported in box 2), box 3, and box 8 on this form.
For information on requesting the recipient's TIN, see
part J in the 2014 General Instructions for Certain
Box 5. Investment Expenses
For single-class REMICs only, see Box 5. Investment
Expenses under Rules for REMICs, FASITs, and Issuers
of CDOs, later.
Box 6. Foreign Tax Paid
Enter any foreign tax paid on interest. Report this amount
in U.S. dollars.
Box 7. Foreign Country or U.S. Possession
Enter the name of the foreign country or U.S. possession
for which the foreign tax was paid and reported in box 6.
Box 8. Tax-Exempt Interest
Enter interest of $10 or more that is credited or paid to the
person's account if that interest is used to finance
government operations and is issued by a state, the
District of Columbia, a U.S. possession, an Indian tribal
government, or a political subdivision. A political
subdivision includes port authorities, toll road
commissions, utility services authorities, community
redevelopment agencies, and qualified volunteer fire
departments. Include in box 8 any accrued qualified
stated interest on these bonds sold between interest
dates (or on a payment date).
Any exempt-interest dividends from a mutual fund or
other RIC are reported on Form 1099-DIV.
No information reporting for tax-exempt OID under
section 6049 will be required until such time as the IRS
and Treasury provide future guidance.
Include specified private activity bond interest in box 9
and in the total for box 8. See the instructions for box 9
Box 9. Specified Private Activity Bond Interest
Enter interest of $10 or more from specified private activity
bonds. Generally, "specified private activity bond" means
any private activity bond defined in section 141 and
issued after August 7, 1986. See section 57(a)(5) for more
details. Also see the Instructions for Form 6251,
Alternative Minimum Tax - Individuals, available at
Box 10. Market Discount
For a covered security acquired with market discount, if
the taxpayer notified you that a section 1278(b) election
was made, enter the amount of market discount that
accrued on the debt instrument during the tax year in the
amount of $10 or more. For more details, see Regulations
section 1.6045-1(n). Also see TD 9616, available at
www.irs.gov/irb/2013-20_IRB/ar07.html. Unless the
taxpayer notified you that a section 1276(b) election was
made to use the constant yield method to determine
accruals of market discount for the debt instrument, use
the general rules in section 1276 to determine the
accruals of market discount. See Regulations section
Box 11. Bond Premium
For a taxable covered security acquired at a premium,
enter the amount of bond premium amortization for the tax
year, unless you were notified in writing that the holder did
not want to amortize bond premium under section 171.
See Regulations section 1.6045-1(n)(5) and
1.6049-9T(b). For a tax-exempt covered security acquired
at a premium, enter the amount of bond premium
amortization for the tax year. If you amortized bond
premium and reported a net amount of interest in boxes 1,
3, 8, or 9, as applicable, leave this box blank.
Box 12. Tax-Exempt Bond CUSIP No.
For single bonds or accounts containing a single bond,
enter the CUSIP number of the tax-exempt bond for which
tax-exempt interest is reported in box 8. If the tax-exempt
interest is reported in the aggregate for multiple bonds or
accounts, enter "various." If a CUSIP number was not
issued for the tax-exempt bond, leave box 12 blank.
Boxes 13-15. State Information
These boxes may be used by payers who participate in
the Combined Federal/State Filing Program and/or who
are required to file paper copies of this form with a state
tax department. See Publication 1220 for more
information regarding the Combined Federal/State Filing
Program. They are provided for your convenience only
and need not be completed for the IRS. Use the state
information boxes to report payments for up to two states.
Keep the information for each state separated by the dash
line. If you withheld state income tax on this payment, you
may enter it in box 15. In box 13, enter the abbreviated
name of the state and in box 14, enter the payer's state
identification number. The state number is the payer's
identification number assigned by the individual state.
If a state tax department requires that you send them a
paper copy of this form, use Copy 1 to provide information
to the state tax department. Give Copy 2 to the recipient
for use in filing the recipient's state income tax return.
Rules for Widely Held Fixed Investment Trusts
Trustees and middlemen must report the gross amount of
interest attributable to the TIH for the calendar year on
Form 1099-INT if that amount exceeds $10. If the trustee
provides WHFIT information using the safe harbor rules in
Regulations section 1.671-5(f)(1) or (g)(1), the trustee or
middleman must determine the amounts reported on
Form 1099-INT under Regulations section 1.671-5(f)(2) or
(g)(2), as appropriate.
Requirement to furnish a tax information statement
to the TIH. A tax information statement that includes the
information provided to the IRS on Form 1099-INT, as well
as additional information identified in Regulations section
1.671-5(e) must be provided to TIHs. The written tax
information statement must be furnished to the TIH by
March 15. The amount of an item of a trust expense that
is attributable to a TIH must be included on the tax
information statement provided to the TIH and is not
required to be included in box 5 on the Form 1099-INT.
WHFIT interest income information may be included in
summary totals reported to the IRS and the TIH.
Information about WHFIT interest income may also be
included in a composite statement furnished to the TIH.
For more filing requirements, see the 2014 General
Instructions for Certain Information Returns.
Rules for REMICs, FASITs, and Issuers of CDOs
CAUTION. These reporting rules apply only to FASITs in
existence on October 22, 2004, to the extent that
regular interests issued by the FASIT before that
date continue to remain outstanding in accordance with
the original terms of issue.
REMICs, holders of ownership interests in FASITs,
issuers of CDOs, and any broker or middleman who holds
as a nominee a REMIC or FASIT regular interest or CDO
must file Form 1099-INT. The form is used to report
interest of $10 or more, other than OID, accrued to a
REMIC or FASIT regular interest holder during the year or
paid to a holder of a CDO. If you are also reporting OID,
this interest and the OID can be reported on Form
1099-OID. You do not have to file both Forms 1099-INT
You are not required to file or issue Form 1099-INT for
exempt recipients including but not limited to the
A financial institution.
Any IRA, Archer MSA, Medicare Advantage MSA, or
A tax-exempt organization.
For additional exempt recipients, see Regulations
Box 1. Interest Income
Report in box 1 the amount of interest, other than OID,
accrued to each REMIC or FASIT regular interest holder
or paid to a CDO holder for the period during the year for
which the return is made. If you are a single-class REMIC
(as defined in Temporary Regulations section 1.67-3T(a)
(2)(ii)(B)), increase the amount otherwise reportable in
box 1 by the regular interest holder's share of investment
expenses of the REMIC for the year. No amount should
be reported in box 3.
Box 5. Investment Expenses
Enter the regular interest holder's pro rata share of
investment expenses deductible by a single-class REMIC.
Statements to Holders
For each Form 1099-INT you are required to file, you must
furnish a statement to the REMIC or FASIT regular
interest holder or CDO holder identified on the form. The
statement must contain the information shown on Form
1099-INT, including the legend shown on Copy B of the
official Form 1099-INT, and an indication that these items
are being furnished to the IRS. The statement also must
show the information specified in Regulations section
1.6049-7(f)(2)(i). In addition, the statement furnished by a
REMIC must show, for each calendar quarter, the
information specified in Regulations section 1.6049-7(f)
(3). Also see Regulations section 1.6049-7(f)(3)(ii) for
information that may be required to be reported to a REIT
that holds a REMIC regular interest.
A single-class REMIC (as defined in Temporary
Regulations section 1.67-3T(a)(2)(ii)(B)) must include in
the statement the investment expenses paid or accrued
during each calendar quarter by the REMIC for which the
REMIC is allowed a deduction under section 212 and the
proportionate share of those investment expenses
allocated to the regular interest holder.
The statement must be furnished to holders by March
15. To meet the statement requirement, you may furnish a
copy of Form 1099-INT and a separate statement
containing the additional information to the REMIC or
FASIT regular interest holder or CDO holder.
For information about reporting income to REMIC
residual interest holders, see the instructions for
Schedule Q (Form 1066), Quarterly Notice to Residual
Interest Holder of REMIC Taxable Income or Net Loss
Allocation, in the separate Instructions for Form 1066,
available at www.irs.gov/form1066.
Form 8811 and Reporting by Brokers or
REMICs and issuers of CDOs must also file Form 8811,
Information Return for Real Estate Mortgage Investment
Conduits (REMICs) and Issuers of Collateralized Debt
Obligations, within 30 days after the start-up date of the
REMIC or issue date of a CDO. The IRS will use the
information on Forms 8811 to update Pub. 938, Real
Estate Mortgage Investment Conduits (REMICs)
Reporting Information, for use by certain brokers,
middlemen, corporations, and others specified in
Regulations section 1.6049-7(e)(4). Pub. 938 is available
For the requirements that a REMIC or CDO issuer or a
broker or middleman who holds a REMIC or FASIT
regular interest or a CDO furnish certain information on
request, see Regulations sections 1.6049-7(e) and