Do I send a copy of my 1099-INT?

Question

I have two 1099-INT forms both are over $10.00. Do I need to send copies of these forms with my W-2 form? Thank you.

Answer 1

Do not include the 1099INT with your return, unless there is federal withholding shown in Box 4 on the form.

Answer 2

There is no 1099-INT. You received a 1099-R that reported the distribution and the taxes withheld. The entire distribution is taxable, plus a 10% penalty. You would have sent a copy of that 1099-R with your return if you filed a paper return since tax had been withheld from the distribution. There's nothing for you to deduct. If you took an adjustment for the penalty on the early withdrawal line on Form 1040, line 30, you screwed up. That line is for any early withdrawal penalty charged by a bank on a time deposit account such as a CD. You don't get a deduction for the 10% early withdrawal penalty paid to the IRS for an early withdrawal from a 401(k). The IRS is asking for a 1099-INT because that is where the early withdrawal penalty charged by a bank would be listed. They don't see one under your name and SSN, so they are asking for it. It does not exist so there's nothing that you could send them. The bottom line is that you do owe what the IRS claims that you owe. You can ask for a 120 day extension of time to pay or you can set up a payment plan if it will take longer than 120 days. There's no fee for the 120 day extension but there is one for the payment plan. If you don't pay by the due date on the CP2000 notice, there will be additional penalties and interest charged.

Answer 3

No, you do not send copies of 1099s UNLESS they list income taxes withheld.