Tax form guide · US · 2026
Form 1099-INT: when a small business issues one
Most 1099-INTs come from banks. A small business issues one only in a few cases. When it does, the threshold for 2026, the boxes that matter and the due dates.
Tax forms › Form 1099-INT · Last reviewed October 25, 2026 · General information, not tax advice
Form 1099-INT at a glance
| What it reports | Interest paid during the year, and any federal tax withheld on it |
|---|---|
| Bank-type interest | $10 or more (box 1, 3 or 8) |
| Other interest paid in your trade or business | $2,000 or more for 2026 (was $600), may be indexed from 2027 |
| Due for 2026 | Recipient Mon, Feb 1, 2027; IRS Mon, Mar 1 on paper or Wed, Mar 31, 2027 electronically |
| File with | IRS, through IRIS or on paper with Form 1096 |
What Form 1099-INT is
Form 1099-INT reports interest income. Banks, brokers and bond issuers file most of them. They use a $10 threshold for interest on deposits, registered bonds and similar obligations.
A business that is not in the lending business has a separate rule. The IRS draft instructions for 2026 say to report interest of $2,000 or more paid in the course of your trade or business that does not meet the bank-type criteria, with examples such as interest received with damages and interest on a tax refund. The threshold was $600 before 2026 and may be adjusted for inflation from 2027.
Who has to file
- A business that paid $2,000 or more of interest to one person in 2026 in the course of its trade or business, where the interest is not bank-type interest.
- Anyone who withheld federal income tax under backup withholding on interest, whatever the amount.
- If your business pays interest to an individual, for example on a loan from a family member or on a seller-financed purchase of the business, ask your tax professional whether a 1099-INT is required for that payment.
- Interest you pay to a bank or other corporation lender is generally not reported by you.
Due dates
| What | Due |
|---|---|
| Copy B to the recipient | Mon, Feb 1, 2027 (Jan 31 is a Sunday) |
| Copy A to the IRS on paper, with Form 1096 | Mon, Mar 1, 2027 |
| Copy A to the IRS electronically | Wed, Mar 31, 2027 |
Penalties for filing late or wrong
- Information return penalties per form for returns due in 2027: $60 if filed within 30 days, $130 by August 1, $340 after that or not filed.
- Separate penalties for the recipient's copy, lower yearly caps for small businesses, and at least $690 per form for intentional disregard.
Form 1099-INT boxes a small business uses
| Box | What goes there | Where it comes from in your books |
|---|---|---|
| Payer | Your name, address, phone and TIN | Company settings |
| Recipient | The lender's TIN, name and address | Their Form W-9 |
| 1 | Interest income paid during 2026 | The interest expense posted for that lender in the year, counted when paid |
| 2 | Early withdrawal penalty | Banks only |
| 3 | Interest on US savings bonds and Treasury obligations | Not used by most businesses |
| 4 | Federal income tax withheld (backup withholding) | Only if you withheld it |
| 8 | Tax-exempt interest | Not used by most businesses |
| 15 to 17 | State, state ID and state tax withheld | Only where your state requires it |
Count interest when it is paid or credited to the lender, not when it accrues. Principal repayments are not reported.
Common mistakes
- Reporting the whole loan payment, principal included, instead of the interest only.
- Using the $10 bank threshold, or the old $600 figure, for business interest in 2026.
- Putting interest on a 1099-MISC or 1099-NEC.
- Not collecting a W-9 from a private lender before the first payment.
- Filing on paper with 10 or more information returns in total.
How to file Form 1099-INT
- List interest you paid. Run the interest expense account for 2026 by payee and separate bank lenders from individuals and other payees.
- Apply the threshold. Mark each non-bank payee paid $2,000 or more, and check with your tax professional for any you are unsure about.
- Collect TINs. Get a Form W-9 from each payee you will report.
- Send and file. Give Copy B to each recipient by February 1, 2027, and file Copy A through IRIS by March 31 or on paper with Form 1096 by March 1, 2027.
How AcboBooks fills it in
AcboBooks 0.2.1 does not print Form 1099-INT. It does keep the number you need: record each loan payment with the principal and the interest split, the interest to an interest expense account, and the lender as the payee. Purchases by vendor and the interest expense account in your reports then give the year's interest for box 1.
What it leaves to you
- The 1099-NEC wizard counts total bill payments and cheques, principal included, so do not use it for interest.
Described as of AcboBooks 0.2.1. See year-end slips in AcboBooks
Questions
Does my small business have to send a 1099-INT?
Only in a few cases: generally when you paid $2,000 or more in 2026 of interest in the course of your trade or business that is not bank-type interest, or when you withheld backup withholding on interest. Loans from banks and corporate lenders are not reported by you.
What is the 1099-INT threshold for 2026?
$10 for bank-type interest on deposits, bonds and similar obligations. $2,000 for other interest paid in the course of a trade or business (it was $600 before 2026), per the IRS draft instructions for 2026.
When is the 2026 Form 1099-INT due?
To the recipient by Monday, February 1, 2027. To the IRS by Monday, March 1, 2027 on paper or Wednesday, March 31, 2027 if you e-file.
Do I report the principal I repaid?
No. Only the interest goes on Form 1099-INT.
Sources
- IRS draft Instructions for Forms 1099-INT and 1099-OID (Rev. December 2026)
- IRS: About Form 1099-INT
- IRS General Instructions for Certain Information Returns
- IRS: Information return penalties
- IRS Rev. Proc. 2025-32, sections 3.57 and 3.58: information return penalties for returns due in 2027
Checked against these sources on . Dates assume a calendar year and apply the next-business-day rule for weekends and holidays.
Related
- How to fill out Form 1099-MISC
- How to fill out Form 1096
- How to fill out Form W-9
- How to record a business loan
- 1099 vendors: from the W-9 to filing
- Year-end hub: every US and Canadian year-end form, deadline and checklist
- Information return late-filing penalty calculator (W-2 and 1099)
- All tax form guides
General information, not tax or legal advice. Forms, thresholds and dates change; confirm with the IRS and SSA or a tax professional before you file.
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