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  4. Irs Charging Themselves A Late Penalty For Late Processing Of Your Return

Irs Charging Themselves A Late Penalty For Late Processing Of Your Return

happyharold4
  |     |   388 posts since 2022

For the last 2-3 years my daughters refund was processed late so IRS paid her an additional amount and followed up by sending a 1099 for that amount. Previously the amounts were between $12-$15. This year 2023 they overpaid for 2022 by $4.80 but so far she hasn't received a 1099 for that amount. My question is---Does the IRS not send a 1099 for under $10 like their ruling for FI's? She will include the $4.80 as income anyway, but didn't want to wait around for a 1099 that may never be coming. Thanks

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me1004
  |     |   1,379 posts since 2010
The IRS must give interest on all refunds or other due to the taxpayer starting May 1 each year, if they have not already processed the form and sent the refund. Well, presuming you filed the tax form by the deadline.

IRS requires you to list and pay tax on any interest, including from IRS, even if below $10 and you have not recieved a 1099. IRS is definitely going to know that they gave you less than $10. I can't recall with certainty if they sent me a 1099 about that after paying me less thant $10 last year, but I think not.
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