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We are required to annually report interest payments of $600 and higher made to U.S. residents by issuing IRS form 1099-INT. (If you are not familiar with this form, it is the "W-2" for interest income.) The 1099-INT form is sent to our investors in January of each year.
If the interest amount is below $600, the investor may choose not to receive a 1099-INT form (if we are informed before the end of December each year). Of course, the interest amount is still taxable income that the investor is responsible for reporting.
Only interest actually paid is reported for tax purposes. If an investor is compounding and accruing interest, under current regulations, we do not report that interest until it is actually paid to the investor. |
