Like all the variants in the 1099 series, Form 1099-INT serves an important role in reporting interest income correctly to the IRS. So, who qualifies as a Payer? What are the deadlines you need to remember? What are the interest reporting rules? This how to file 1099-INT guide for payers will take you through everything you need to know to stay compliant and on top of your tax game!
Who is a 1099-INT Payer?
A payer is any organization that pays at least $10 of interest (taxable, tax-exempt, or U.S. Treasury) to a non-exempt recipient during the calendar year. This includes banks, credit unions, brokerages, crowdfunding platforms, corporations, government entities, and other financial institutions.
Look at the following table to get an idea of the typical payers and the interest they report.
| Payers | Interest They Report | Common Edge-Cases |
|---|---|---|
| Retail and online banks, credit unions | Checking, savings, CD, and share-draft interest | Credit union “dividends” still count as interest |
| Broker-dealers and robo-advisors | Bond, note, and money-market fund interest | Don’t confuse OID with regular interest |
| Crowdfunding portals and payment processors | Escrow or wallet interest credited to campaign owners | Platform, not backers, is the payer |
| Corporations issuing private notes or employee loans | Note interest paid to investors or staff | C-Corps receiving interest are recipients and are exempt |
| Government agencies and REMICs (Real Estate Mortgage Investment Conduit) | Savings bond, Treasury bill, or mortgage pool interest | Report Treasury interest in Box 3 |
Note: If the recipient is a C-Corp, IRA, or other exempt organization, the payer usually does not file a 1099-INT. This is even if the $10 threshold is met.
Facts and Rules Payers Must Know
| Fact | What the Payer Must Do | Date/Rule |
|---|---|---|
| $10 rule | File when yearly interest is $10 or more (or any amount if federal tax was withheld) | IRS trigger |
| Send to recipients | Deliver Copy B | January 31, 2026 |
| File with IRS | E-file Copy A | March 31, 2026 (Paper: March 2) |
| ≥ 10 combined 1099s → e-file | Mandatory e-file requirement | IRS rule |
| Late fees | $60 – $660 per late or incorrect form | Penalty scale |
| Keep records | Keep forms, W-9s, and proofs of delivery for 4 years | Audit rule |
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How to File 1099-INT
So, how to file 1099-INT? Here are four easy steps you can follow and ace it!
Collect W-9s
Start with collecting W-9s from the payees. Check the TIN if it’s correct. If you’re unsure about the TIN, the IRS expects you to withhold 24% of the payments. This is called backup withholding. It protects you from 1099-INT penalty and ensures you have the right information for filing.
Add up the interest
At the end of the year, add every dollar of interest you paid. Don’t forget to add accounts that closed before year-end, escrow interest, and daily CD accruals credited at maturity.
Complete each form
Follow the box guide, explained in the next section of this blog, to report the right amount and other details. Always make sure you recheck all the numbers.
You can use 1099Online platform to file 1099-INT accurately and bulk import the data for filing high volume of 1099-INT forms.
Send copies in the right order
By now, most of the hard work is done! All you have left is to send the copies to the recipients and the IRS. Make sure you stick to 1099-INT deadline 2026.
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- Send Copy B to the recipient by January 31, 2026
- Send Copy A to the IRS by March 31, 2026, if you’re e-filing. If you’re paper filing, send it by March 2.
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Correct errors (If any)
If you spot mistakes after filing, correct them quickly. Tick the “CORRECTED” box, enter the correct information, issue a fresh Copy B, and upload the replacement file within 30 days. The faster, the better!
Quick Box-by-box Guide for Payers
Here’s a box-by-box breakdown of form 1099-INT for payers.
| Box Number | What the Payer Reports | Watch-Out For |
|---|---|---|
| Box 1 | Total taxable interest paid | Credit-union “dividends” count here |
| Box 2 | Early-withdrawal penalties charged | Report the fee; don’t net it against Box 1 |
| Box 3 | U.S. Savings Bond or Treasury interest paid | Keep it separate from Box 1 |
| Box 4 | Backup federal tax withheld | Amount must match deposits to the IRS |
| Box 6 and 7 | Foreign tax & country withheld | Only if foreign tax was actually withheld |
| Box 8 and 9 | Tax-exempt & AMT interest | Mostly municipal bonds; remember Box 9 |
| Box 15 to 17 | State information (optional) | Add state code + payer’s state ID when state tax is withheld |
Note: If the payer also issued an Original-Issue Discount, file Form 1099-OID instead of forcing OID into 1099-INT Box 1.
Real-Life Examples for Payers
Below are some real-life scenarios payers come across. Go through them to know when to file, and when not to.
| Amount Paid | Should the Payer File? | Boxes |
|---|---|---|
| $8 interest to an individual | No – below $10 | N/A |
| $45 interest to an individual | Yes | Box 1 |
| $15 interest each to 12 trust beneficiaries | Yes – 12 forms | Box 1 |
| $200 municipal-bond interest | Yes | Boxes 8 & 9 |
| $500 CD interest to a C-Corp | No – recipient is exempt | N/A |
| $75 foreign tax on $400 interest | Yes | Boxes 1, 6, 7 |
1099-INT Deadline Calendar
Stay on top of you 1099-INT filing by sticking to these deadlines. Mark your calendars!
- January 15, 2026 – This is not an IRS deadline. To file within the due date, make sure you finalize interest totals and complete TIN-matching.
- January 31, 2026 – Recipient copies distribution deadlineMake sure you have delivered the recipient copies either via print and mail or IRS-compliant eDelivery.
- March 2, 2026 – Mail paper Copy A (only if you’re paper filing)
- March 31, 2026 – E-file Copy A (1099Online submits this for the payer)
- April 30, 2026 – Last day to request IRS for penalty relief for any honest mistakes during filing.
Common Errors and How to Fix Them
Even pros make mistakes with 1099-INT filing. But if you catch them early and make corrections diligently, the IRS can be more lenient with 1099-INT penalty.
| Error by Payer | Why It Hurts | How to Easily Fix |
|---|---|---|
| Wrong or blank Tax ID | IRS B-Notice and possible penalties | Obtain correct W-9, file CORRECTED form, start backup withholding if needed |
| Mixing interest and OID | Wrong form type | File 1099-INT for interest, 1099-OID for discount |
| State tax withheld but no state code | IRS/State reject e-filing | Add 2-letter state code + state ID, re-submit |
FAQs
1. Should a payer always e-file?
Yes, e-filing is mandatory when you have 10 or more information returns for the year.
2. Can a payer get more time to file? If yes, how do I go about it?
Yes, you can. File Form 8809 before the due date for a 30-day extension. However, this option is not available for 1099-NEC.
3. What should I do if the payee is a non-resident alien?
In this case, report U.S. bank-deposit interest on Form 1042-S, not 1099-INT.
4. How long should I keep the records?
Always store all forms, W-9s, and other supporting documents for at least four years. It will come in handy in case of IRS audits.
5. Are payers allowed to include branding on recipient copies?
Yes, this is possible. But make sure the IRS-required wording and layout remain unchanged.
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