No question you must report this income even if not enough to get 1099-INT. If this was not required, just think of the schemers (as mentioned in another response) who would open 100 accounts each getting $9.99 in interest to save the taxes on $999.99. How much money would the IRS be cheated out of? I live in Mass very close to the NH border. I must pay Mass sales tax on all taxable products bought out of state. I normally do grocery shopping in NH, but although food is not subject to Mass sales tax, some of the products I buy are, like paper napkins or dishwasher soap. As with most Mass residents, I faithfully keep all my receipts from the grocery stores so that at the end each year, I can comply with the Mass tax requirements, document the sales tax I owe, and report this on my Mass tax form. If other Mass residents did not do this, how much money would the state be cheated out of? People might be travelling to NH for the sole purpose of buying paper napkins for example. So if you made made $5 in interest and don't report it to the IRS, you are culpable and an agent making $60-$90 an hour may eventually catch your attempt to cheat the government out of the fifty cents you may owe, and after extensive litigation you may be paying penalties, or who knows, even doing jail time. So please take Tom's advice and don't let this happen to you. If you have accounts at various banks for which you have not received a 1099-INT, you should certainly either call or visit the branch to make sure you are reporting interest income properly.
