I have the following situation:
In February 2023 IRS issued me a check that included a return for a previous year and some interest on it. Early in 2024 they sent me a form 1099-INT showing this interest as 2023 income.
However, I forgot to cash the check within 1 year of receiving it, and I have just received an IRS notice telling me that they have just send me a new check to replace the one that expired last month. I then checked the account transcript corresponding to that return’s year, and the transactions shown there are now as follows:
What confuses me is that the IRS reported the transaction with code 777 for the same date in which the interest had originally been credited to my account in 2023, and then a new transaction with code 776 in March 2024. I am aware that when receiving income via check what matters is the date when you receive the check and not the date when you cash it, so I am wondering: should I still consider that I received that income in 2023 and report it in my 2023 tax return? Or should I ignore the 1099-INT and wait for a new one for 2024?
Thank you for your help
You'll need to sign in or create an account to connect with an expert.
You should report the interest in the year the funds were available to you, which would be in 2023 in this case it would seem. It doesn't matter that you didn't cash the check, you could have cashed it in 2023, so the income belongs in that year.
You should report the interest in the year the funds were available to you, which would be in 2023 in this case it would seem. It doesn't matter that you didn't cash the check, you could have cashed it in 2023, so the income belongs in that year.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
CGTaxes
Level 1
jwynn1477
New Member
JR500
Level 3
davidkortebein
New Member
Rossw
Level 2