Tax question. Form 1099
 

Hi All
Any tax experts here? if so, need some info on the following, pretaining to IRS form 1099. Will a Bank or Investment Company submit a 1099 to the IRS for interest on an account, when the interest is less then $100.00?
Will I need to show this amount as income on my 1040? Thanks.

The 1099 for interest income is required to be filed if they pay interest of $10 or more. Most banks routinely issue the 1099 even if the interest is under $10. If you don't report the interest income on your return, the IRS computers will probably catch that in a year or so. If the non-reported interest income is enough to increase your tax, you will receive a computer generated bill for tax due plus interest. If the under reporting is large enough, they could also add penalties to the bill.

Play it straight. Rewards not worth the risk.

Wes