MinhT1
Expert Alumni

Business & farm

Yes. Your S-Corp has to report this interest income, which will flow through to its shareholders to be taxed. The interest is reported on line 5 of form 1120S - Other income.

 

The IRS says that the payer (your broker) is not required to file form 1099-INT when interest is paid to a corporation. They didn't say that a corporation doesn't need to report form 1099-INT.

 

Your broker is not required to send forms 1099-INT to corporations because corporations have accounting books which should have recorded all income and expenses.

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