Nominee interest

[hhog]

I have nominee interests from my 1099-INT and 1099-DIV.  I have not yet filed my taxes but am on the final steps.  So far, I have not been asked to provide the actual recipient's information (name, SSN, etc.).  Could you please confirm when I will be asked to provide that information?  Thank you.

[rjs]

You will not be asked for information about the actual recipient. You do not report information about the actual recipient on your tax return.

You should have given the actual recipient a Form 1099-INT or 1099-DIV, and filed those forms with the IRS along with Form 1096.

[hhog]

Thank you @rjs so much for your quick response.  

> You should have given the actual recipient a Form 1099-INT or 1099-DIV, and filed those forms with the IRS along with Form 1096.

So just to make sure, where would their copy of the 1099-INT/DIV come from?  Just as a simple example, I have a 1099-INT from my bank showing an interest of $1000, where $600 belongs to me and $400 belongs to them.  Do I give them a copy of that 1099-INT (showing $1000)?

Also could you confirm who will file Form 1096 - me, them, or both of us?

Thank you again for your help.

[rjs]

You do not give the other owner a copy of your 1099-INT or 1099-DIV. You issue a new 1099-INT or 1099-DIV as if you are the payer of the interest or dividend. In your example, you would issue a 1099-INT for $400 to the actual recipient.

Form 1096 is a transmittal form that you, as the issuer of the 1099-INT or 1099-DIV, send to the IRS along with copies of the 1099-INT and 1099-DIV forms that you issued.

The following are from the IRS instructions for Schedule B.

"If you received interest as a nominee, you must give the actual owner a Form 1099-INT (unless the owner is your spouse) and file Forms 1096 and 1099-INT with the IRS. For more details, see the General Instructions for Certain Information Returns and the Instructions for Forms 1099-INT and 1099-OID."

"If you received dividends as a nominee, you must give the actual owner a Form 1099-DIV (unless the owner is your spouse) and file Forms 1096 and 1099-DIV with the IRS. For more details, see the General Instructions for Certain Information Returns and the Instructions for Form 1099-DIV."

You may need assistance from a tax professional to correctly file these forms. The tax professional might be able to file them with the IRS electronically.

The deadline for filing Forms 1099-INT, 1099-DIV, and 1096 with the IRS was February 28 if filing paper forms, or March 31 if filing electronically. The penalty for filing more than 30 days late is $130 per form.

See the General Instructions for Certain Information Returns for more details about the filing requirements.