I cashed in a NYCB CD that matured in September. When I went online to get my 1099 for the interest I received so I could report it on my tax return, my online access was no longer available. I called customer service and was told I would receive my 1099 by mail (online access was cancelled as soon as I cashed in the C/D!). I followed up around February 10 and was told they had until February 15 to mail out the 1099's. I still had not received it by February 25, so I called the local Ohio Savings branch (where I had originally opened the C/D). Upon checking, I was told I had to go into the branch and sign a form before they could give me my 1099. Is this even legal? Has this happened to anyone else? I think this has happened to me before, so once burned.....
Answers
You just need to report the amount of the interest on your return. Now, I guess there's a possibility that the payor will report an incorrect amount to the IRS (unlikely, but not impossible). Have you asked a bank representative to tell you how much interest they reported?
[end of answer to jroman24]
As to how I deal with such things (and I am not recommending that anyone do the same), I've never been bothered about missing 1099-INTs for CDs, and have never had a problem with it. The one area I'd be careful about is if I closed a CD before maturity and had a penalty imposed. I'd want to be certain that the payor got it right. Other than that, I wouldn't spend much time or effort getting a document that the IRS isn't asking me for.
But that's just me -- I certainly recognize that others are willing to expend the effort. To me, the possible detriment from not receiving the document before filing my return does not outweigh the two major principles of my approach to personal finance -- laziness and inertia.
But, in any case, you can report the interest on your return without having received the 1099.
As we don't even have to submit 1099s electronically filing taxes, and for any record at all, We are forced to d/l them ourselves. Paper Reduction Act ..right ?
How do people deal with CU/ Bank "assumed" non-reported $10 and under interest income?
I have many accounts with just low dollars kept for activity requirements.
But that is the technicality. It would be harder to enforce it than simply signing whatever form they want. But also, try another call, and to a higher up, the CSR with whom you spoke doesn't necessarily know what they are talking about, even a branch manager doesn't necesarily know. And they can mail you that form, or e-mail it over.
Did they say they had mailed it and it was returned?
blazer9, re the 1099 for under $10.00. Yes, you are right, they do not have to report that, to you or the IRS. You are supposed to report it on your 1040 anyway, but no one knows, in particular the IRS, so I'm sure few people do that. But if they send one, I figure you better report it on your tax form.
I got one a couple years ago from a CU I'm in showing total interest for the year was 32¢! Oh, for god's sake, but because they sent the 1099, I reported it on my 1040. It cost them more in postage to send that than it amounted to!
his past year, I got around $4 in interest from the IRS, but no 1099. Now, the IRS already knows they paid that, I figure I better list it on my 1040 that I file in about a month, even with no 1099. I'm presuming the IRS is not required to send a 1099 form, but they still expect that to be reported on my 1040.
I've never looked into it, so I don't claim to know whether those institutions are violating some law or regulation. I tend to doubt it, but I don't actually know.
Why does jroman24 have to fill out a form and apparently in person?! That's nonsense.
Choice, I fully undestand the burden that change in the 1099 imposes. Still, you must file that income and pay tax on it. IRS generally waits at least two years after the filing to do audits. If they see you did not file some income, you might get an audit -- although they might give you a break because they will see your 1099 was changed - - but they will still send you a bill, and add interest due on it between the due date of that tax year and when they bill you. You don't want to have to deal with an audit, even if you do everything perfectly, it is a monstrous thing to go through, digging out all kinds of backup paperwork and bookkeeping.
I had a change from a mutual fund in early March one year, and I had to completely re-do my taxes because of that.
Another area of concern I have found is what has occurred to me each of the past 2 years. Receiving a 1099-INT for my traditional IRA. Took a lot of work to get those corrected in both instances. Good luck!
