@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.
If you are the lender on a mortgage, you issue a 1098 to the borrower. However, a car loan is not a mortgage, and even if it was, you do not issue a 1098 if you hold a mortgage privately, only businesses that make loans are required to issue 1098s. If you are the lender on a student loan, you issue a 1098-E to the borrower.
There is no similar form for car loans, whether business or private. A lender on a car loan does not issue tax statements to the borrower.
The 1099-INT is used to report interest paid to a depositor or investor. Neither you nor the borrower is a "depositor" in this case.
