File 1099-INT Online

What is a 1099-INT?

Form 1099-INT is used to report interest income to the IRS. It is issued by banks, credit unions, and other financial institutions to individuals and entities who receive $10 or more in interest income during the year.

• Purpose: The 1099-INT is for reporting interest income that exceeds $10.
• Who Should File: Financial institutions and businesses that pay interest should file 1099-INTs to the IRS.
• How to File: Businesses can e-file their 1099-INTs, which is often recommended over postal mail for efficiency and accuracy.

When is a 1099-INT required?

Typically, financial institutions and businesses in the United States are required to file a 1099-INT with the IRS for each recipient to whom they pay more than $10 in interest over the course of a tax year. However, certain entities, like foreign businesses, may not be required to file a 1099-INT with the IRS even if they pay interest income in the United States. A business may need to file a 1099-INT when they pay interest income to:

• Account Holders
• Bondholders
• Certificate of Deposit (CD) Owners
• Savings Account Holders
• Loan Recipients
• More

Can I file a 1099-INT online?

Yes, you can file a 1099-INT with the IRS on their website or submit it via traditional postal mail. Avalara 1099 & W-9 customers can also e-file 1099-INT forms directly with the IRS and automatically validate their account holders’ Taxpayer Identification Numbers (TINs) at the same time to catch errors and reduce the potential for future B-notices.

For step-by-step instructions to e-file, e-deliver, and correct erroneous information in 1099-INT forms with Avalara 1099 & W-9, watch our video tutorial:

When is the deadline to file a 1099-INT?

The deadline for a business to file a 1099-INT with the IRS to report interest income for the previous year is March 31st. Businesses must also send a copy of the 1099-INT to the interest recipient by January 31st to ensure that the recipient’s income is accounted for in their annual tax filings.

How do I file a 1099-INT?

The following steps are best-practices for filing a 1099-INT with the IRS:

• Step 1: Obtain account holder information, including their TIN, when they open an interest-bearing account.
• Step 2: Validate that the account holder’s legal name, address, and TIN are legible and accurate.
• Step 3: Obtain permission from the account holder to receive their 1099-INT via email in January.
• Step 4: At the end of the tax year, fill out a 1099-INT with information from the account holder’s records.
• Step 5: Electronically file the 1099-INT with the IRS before the annual March 31st deadline.
• Step 6: E-deliver copy B of the 1099-INT to the account holder before the annual January 31st deadline. (Use postal mail for an account holder who did not initially opt-in to electronic delivery and make sure it is postmarked before January 31st.)
• Step 7: Retain a copy of the 1099-INT for your business records in a safe and secure repository.
• Step 8: Investigate unique state requirements for additional 1099-INT filings.

Note: All of these steps for 1099-INT compliance can be automated using Avalara 1099 & W-9, including the necessary collection of account holder information at the point of account opening. This video tutorial explains how: