AP paid an escrow company interest on a note (loan) . Does this qualify as reportable income on a 1099-INT?


We spoke with Ms. Lamb at the IRS (ID# 1001306657) who cited the IRS Instructions for form 1099-INT and 1099-OID; she said yes, report the interest on 1099-INT if you paid $600 or more, and the escrow company is not incorporated. However, the corporate exception applies here, so if the company is a C- or S-corporation, you do not have to report the interest payment.

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