Generally the CD interest ( not being available to you ) does not constitute constructive receipt till the maturity date . So the bank that did not issue a 1099-INT is correct. If however they do make it available to , even with restriction , you would have to recognize -- this is because the bank would book it as interest paid in their filings. That is my understanding of CD interest reporting.
Generally the CD interest ( not being available to you ) does not constitute constructive receipt till the maturity date . So the bank that did not issue a 1099-INT is correct. If however they do make it available to , even with restriction , you would have to recognize -- this is because the bank would book it as interest paid in their filings. That is my understanding of CD interest reporting.
Another bank did issue a 1099-INT even though the CD has not reached maturity. So unfortunately I am still confused.
The point I was trying to make is that if a 1099-INT is issued then you have to recognize it and if not, then you ignore -- depends on the banks accounting practices
I believe that if the CD is a year or less, they can wait until maturity. If longer, they must do so every year.
This is from instruction for form 1099-INT -->
"When is a payment made? Generally, interest is paid
when it is credited or set apart for a person without any
substantial limitation or restriction as to the time, manner,
or condition of payment. The interest must be made
available so that it may be drawn on at any time and its
receipt brought within the control and disposition of the
person.
For payments made on obligations subject to
transactional reporting (for example, savings bonds,
interest coupons, and other demand obligations), interest
is paid at the time the obligation is presented for payment.
For example, interest on a coupon detached from a bond
is paid when it is presented for payment."
therefore I hold my position that you recognize when a 1099-INT is issued and not on "Interest promised " but not paid.