Fidelity has a new format for small 1099's this year --- they over-print the word "De Minimis" in large letters across the body of the form. I just downloaded a copy of my 1099-INT for 36 cents. The second page did show that they paid three cents every month, so if guess I'm all set in case I have to fill out an annualized 2210.
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It is less than $10 the threshold to issue a 1099-Int that is why they are printing Deminimus so that taxpayer can include that interest income along with other small interest income.Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR -
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a lot of financial instutions go tired of getting the calls asking for the 1099-INT when it was not required and they were not looking at their statements. They are hoping this will help.Comment
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So, they're taking the time to print and send the 1099-INTs, but letting the recipients know that they don't have to actually account for the interest? That's a little silly in terms of resources, but I can see how it's also a brilliant idea.Originally posted by JON View Post--
James C. Samans ("Jamie")Comment
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Not a good idea unless they only use it on those accounts under $1. I seem to remember that any interest over 99 cents is to be reported regardless of whether a 1099 is issued or not. How are they helping their clients if the 1099 is for $5.87 and they write de minimus? (I understand the IRS will not know about the interest).Comment
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What Fidelity says ...
I got curious and searched the Fidelity web site for "de minimis". According to the website, they use the "de minimis" watermark on all 1099's that THEY are not required to produce or send to the IRS. So an account with only $8.00 of interest (no withholding, no foreign tax, no sales) that the client would be obligated to report to the IRS would have a 1099-INT marked "de minimis". Further, they only produce an on-line .pdf version of the 1099; they do NOT produce a hard copy and mail it.
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