@JimDimitri wrote:
Then why do the banks send out 1099-INT forms. I am acting in the same capacity as the bank and need to submit to the borrower the form for their taxes.
Because the bank is paying the interest to you. You are not paying the interest to the borrower. You are receiving interest. When the bank makes a loan they do not give out a 1099 INT to the payer. Just give the borrower a statement with the amount. If it was like for a house loan they would get a 1098 from the Bank.
