When reporting income to the Internal Revenue Service (IRS), taxpayers need to be as accurate as possible. Small mistakes and errors in the reporting can create a financial struggle. In many cases, mistakes happen because of typos. No matter why they happen, reporting the error to the IRS is necessary. This applies in situations related to Form 1099-INT as well. To make Form 1099-INT corrections, there are several key things individuals should know.
What If a 1099-INT Form Is Incorrect?
When a taxpayer learns that the Form 1099-INT they have is not correct the first step is to contact the provider of that form to request for a new copy to be sent to you. Keep in mind that this may be a bank, brokerage, or other type of financial institution. The reporting agency will send a copy of the Form 1099-INT to the taxpayer for federal and state tax return filings. In addition, they will send a copy of this form directly to the IRS. For this reason, if an error occurs, it is important to send the IRS a new, updated form that shows the accurate information.
At the top of Form 1099-INT, there are two boxes. One has the word “void” next to it and the other has the word “Corrected” next to it. If you have a Form 1099-INT that was reported in error and no form should have been sent to the taxpayer or to the IRS, then check the box marked “Voided.” If the form has an error, such as the wrong amount listed, check the box “Corrected.”
Who Should Sent the IRS the Updated Form?
It is not usual or in most cases possible for a taxpayer to issue a new Form 1099-INT with the corrected amounts him or herself. Rather, the organization that reported the information in the first place needs to supply this information. Request that the financial institution submit an accurate Form 1099-INT on your behalf.
If the taxpayer has already used the incorrect information to complete his or her tax return for the year and has submitted that return to the IRS, the taxpayer may need to re-file the Form 1040 or other federal form to the IRS. It is important to ensure that the IRS is always given the most complete and accurate information possible when completing these forms. Even if the information does not change the amount of taxes paid by the taxpayer, it is important for the individual to report accurately to the IRS any interest earned.
Who Should Report Form 1099-INT on Tax Returns?
Form 1099-INT is sent to those individuals who earn income in the form of interest from banks, brokerages, or financial institutions of other types. The income from the tax return is sent to the taxpayer and the IRS by the financial institution. It is up to the taxpayer to report this income to the IRS on his or her tax form. Nearly all income earned and reported on this form is considered taxable.