Ask Experts Questions for FREE Help !
Ask
    boomer08's Avatar
    boomer08 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Feb 5, 2008, 07:23 PM
    1099 statement for recipients of interest income
    Hi my name is Meli, and I received a statement for recipients of interest income for calendar year 2007 and at the bottom of the statement it states along these lines: "the amount of interest paid or credited to you in the calendar year shown is on an overpayment of federal tax. The amount may represent interest on an overpayment for more than one year, or more than one kind of tax."

    Can someone be kind enough to tell me if the IRS is implying I owe them money or do they owe me?
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Feb 6, 2008, 04:33 AM
    It appears that you had a tax refund and the IRS delayed the payment of the refund. So they paid you interest also.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Feb 6, 2008, 03:46 PM
    Agreed; the IRS started paying interest on late tax refunds in the late 90s.

    That INTEREST is taxable income; hence, the 1099-INT from the IRS.
    washwords's Avatar
    washwords Posts: 1, Reputation: 1
    New Member
    		  
    #4

    Mar 6, 2011, 05:45 PM
    But how do I report this on the next year's taxes (I got a similar statement for 2010.) do I enter it like any regular "1099-interest" form with "IRS" as the "bank/brokerage." Can't believe there's not a clearer web site/form # for this since it's FROM IRS?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #5

    Mar 6, 2011, 09:58 PM
    The IRS will send you a Form 1099-INT, and you enter it on the Schedule B, just like the bank interest.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Cash basis income statement vs. Accrual basis income statement [ 5 Answers ]

What is the difference between a cash-basis income statement and an accrual-basis income statement? For example, how would I record a cash basis income statement for April, May, and June, if the company started in April? HELP!

Multiple-step income statement in good form and retained earnings statement [ 1 Answers ]

Hi I would like someone to check to see if I did this correctly, if I did not then please help. Thanks The Problem is: The following pretax amounts pertain to River Corp. for the year ended December 31, 2008. Sales... $400,000 Operating Expenses... 84,000 Extraordinary gain... 30,000...

Income statement, owners equity statement and balance sheet [ 6 Answers ]

Les Fleurs, a boutique in Paris, France, had the following accounts in its accounting records at December 31, 20X2 (amounts in Euros, denoted as "E") Purchases………………... E250,000 Freight In……………… E8,000 Sales discounts…………. 4,000 Purchase returns…….. 7,000 Inventory Sales…………………. ...

Financial Statement with Balance sheet and income statement [ 1 Answers ]

Here's the problem: The Hobart Company incurred the following transactions during 2003: A. Acquired $50,000 of cash capital from owners B. Paid $10,000 to acquire manufacturing equipment C. Paid $5,000 cash for materials used in production D. Paid $2,000 for wages of production workers...

Prepare income statement and retained earning statement [ 1 Answers ]

The following information was taken from the 2004 financial statement of pharmecutical giant Merck and CO. All dollar amounts are in millions. Retained earnings, January 1, 2004 34,142.0 Materials and production expense 4,959.8 Marketing and administrative expense 7,346.3 Dividends 3,329.1...

View more questions Search