FI's may not issue the taxpayer a 1099-Int for under $10. that doesn't mean they don't report it to the IRS.
the first thing we learn in tax school is that all income is taxable from whatever source derived unless exempt by law. you will not find anywhere in the Internal Revenue Code, Regulations, or any other authoritative literature that a taxpayer can omit reporting a taxable interest payment of under $10. do some taxpayers omit reporting such n amount - sure. but it gets more problematic if a taxpayer has 2 a/c's each earning $9.99 at the same FI and registered under the same SSN. the bank may file one 1099-int with the IRS reporting $19.98
