Are payments made on behalf of another person reportable on a 1099-MISC form?

If you make a payment on behalf of another person, who is the source of the funds, you may be responsible for filing Form 1099-MISC. You are the payor for information reporting purposes if you perform management or oversight functions in connection with the payment or have a significant economic interest in the payment (such as a lien). For example, a bank that provides financing to a real estate developer for a construction project maintains an account from which it makes payments for services in connection with the project. The bank performs management and oversight functions over the payments and is responsible for filing information returns for payments of $600 or more paid to contractors. For more information, see Regulations section 1.6041(e).

For additional information see the 2019 Instructions for Form 1099-MISC 

Should interest income be reported on a 1099 form?

Yes, interest paid in the normal course of a trade or business of at least $10 paid in a calendar year is required to be reported on Form 1099-INT.  You are generally not required to file Form 1099-INT for payments made to certain exempt recipients including, but not limited to:

    • a corporation
    • a tax-exempt organization or an IRA
    • health savings account (HSA)
    • the United States or any wholly owned agency or instrumentality thereof
    • a U.S. state, the District of Columbia, or a U.S. possession
    • a registered securities or commodities dealer,
    • nominees or custodians, brokers, or notional principal contract (swap) dealers
    • other exempt recipients per Regulations section 1.6049-4.

The IRS defines interest as amounts of $10 or more, whether or not designated as interest, that are paid or credited to the person’s account by

    • savings and loan associations
    • mutual savings banks not having capital stock represented by shares
    • building and loan associations
    • cooperative banks
    • homestead associations
    • credit unions
    • or similar organizations.

Include interest on bank deposits, accumulated dividends paid by a life insurance company, indebtedness (including bonds, debentures, notes, and certificates other than those of the U.S. Treasury) issued in registered form or of a type offered to the public, or amounts from which you withheld federal income tax or foreign tax.

When looking through the payments your business made during the prior calendar year pull out payments made on loans or bonds, for equipment leases, on office machine leases or for late payments.  The interest portion of these payments should be reported on a 1099-INT form.