Incorrect 1099-INT [Insight], options besides calling bank?

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need403bhelp
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Incorrect 1099-INT [Insight], options besides calling bank?

Post by need403bhelp » Sun Feb 03, 2019 8:18 pm

So I receive a 1099-INT from Republic Bank of Chicago (for Insight Card-linked 5% savings accounts, which were closed in July) that is ~$190 higher than it should be. I still have online access and have all of the statement saved. I called the bank which transferred me to Insight, who told me after a long hold that their software is getting updated and that I would get a new (?revised) 1099-INT that would be sent out by the end of January. Besides waiting until mid-to-late February and calling them again if I don't get such a revised 1099-INT, do I have any alternatives? I'm a little skeptical that Insight customer service will be able to fix this. The bank itself, which I had called based on the phone number listed on the 1099-INT, didn't seem particularly interested in helping me (and doesn't have any record of me) as an Insight customer.

Thank you!

123
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Re: Incorrect 1099-INT [Insight], options besides calling bank?

Post by 123 » Sun Feb 03, 2019 8:25 pm

You could report interest based on your records. You just have to be right and hope the bank comes to the same number. If there is a variance between your number and the bank's you may become involved in considerable correspondence with the IRS. Was there any deposit bonus or other incentive that would account for the higher number initially reported by the bank? Was your prior 1099-INT for 2017 accurate or could there be a carryover or timing difference that would account for the variance?
The closest helping hand is at the end of your own arm.

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need403bhelp
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Re: Incorrect 1099-INT [Insight], options besides calling bank?

Post by need403bhelp » Sun Feb 03, 2019 8:29 pm

123 wrote:
Sun Feb 03, 2019 8:25 pm
You could report interest based on your records. You just have to be right and hope the bank comes to the same number. If there is a variance between your number and the bank's you may become involved in considerable correspondence with the IRS. Was there any deposit bonus or other incentive that would account for the higher number initially reported by the bank? Was your prior 1099-INT for 2017 accurate or could there be a carryover or timing difference that would account for the variance?
Thanks. My guess is that I'll probably end up just paying the difference if I can't get Insight to fix the 1099-INT.

I'm 100% sure that my number is accurate (I've checked it 3 times, there's no bonus or anything else involved). The only possible justification, as I had 3 separate accounts (it was 5% interest per $5,000 per account) and they report all interest on one 1099-INT, is that someone somehow fraudulently opened a 4th account using my SSN (maybe via typo?) and received interest that Insight thinks belongs to me. However, I think it is quite unlikely that someone would do this (they do, to my recollection, have identity verification questions when opening the account).

I never received a 2017 1099-INT from them although I calculated the interest and reported it. However, since I received the incorrect 2018 1099-INT from Insight, I checked the 2017 IRS Wage and Income Transcript and apparently they did send a 1099-INT to the IRS with the correct interest amount (at least, that matches the one I reported based on my calculations), so I wouldn't think this is due to a discrepancy with respect to the 2017 form.

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HueyLD
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Re: Incorrect 1099-INT [Insight], options besides calling bank?

Post by HueyLD » Sun Feb 03, 2019 8:44 pm

You should just wait until mid-February before working on an alternative.

Document all your effort to have the issuer correct the interest amount. If the corrected 1099-INT is still incorrect, call and send them an email to request corrections. Tell the company that you intend to inform the IRS of your repeated unsuccessful attempts to get correct tax reporting information from the issuer. Wait a couple of weeks for another corrected 1099.

If they don't respond by then, report your own number and attach a note to your tax return. Keep all correspondence so that you can reply to any IRS inquiry.

Good luck.

patrick
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Re: Incorrect 1099-INT [Insight], options besides calling bank?

Post by patrick » Sun Feb 03, 2019 9:36 pm

Perhaps the interest from the last quarter of 2017 was not posted until January 1, 2018 and thus is counted towards the 2018 taxes?

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need403bhelp
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Re: Incorrect 1099-INT [Insight], options besides calling bank?

Post by need403bhelp » Sun Feb 03, 2019 10:30 pm

HueyLD wrote:
Sun Feb 03, 2019 8:44 pm
You should just wait until mid-February before working on an alternative.

Document all your effort to have the issuer correct the interest amount. If the corrected 1099-INT is still incorrect, call and send them an email to request corrections. Tell the company that you intend to inform the IRS of your repeated unsuccessful attempts to get correct tax reporting information from the issuer. Wait a couple of weeks for another corrected 1099.

If they don't respond by then, report your own number and attach a note to your tax return. Keep all correspondence so that you can reply to any IRS inquiry.

Good luck.
Thanks for your advice. FWIW, I did record the conversation I had with the bank & Insight card (via recordator.com, which is actually pretty neat). It may be difficult to send the recording to the IRS, though, if it comes to that.

I can try sending an email also after mid-February, although I don't really have a good secure avenue of contacting them. I would be worried about sending too much personal information like SSN over unsecure email. I guess I can try the secure messaging feature in the Insight card accounts (the online access was supposed to be disabled long ago and I had confirmed this repeatedly but finally just gave up as the cards & accounts are closed), although in my experience they just tell you to call.

Thanks again for your advice.

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need403bhelp
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Re: Incorrect 1099-INT [Insight], options besides calling bank?

Post by need403bhelp » Sun Feb 03, 2019 10:31 pm

patrick wrote:
Sun Feb 03, 2019 9:36 pm
Perhaps the interest from the last quarter of 2017 was not posted until January 1, 2018 and thus is counted towards the 2018 taxes?
Thanks for your suggestion. Just to be clear, I am calculating all interest credit to my account in 2018. This includes January 1, 2018, April 1, 2018, and July 1, 2018. My accounts were closed right after the interest was credited on July 1, 2018.

I did similar calculations in 2017 (1/1/17, 4/1/17, 7/1/17, 10/1/17), and these matched the 1099-INT they sent to the IRS exactly.

MarkNYC
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Re: Incorrect 1099-INT [Insight], options besides calling bank?

Post by MarkNYC » Sun Feb 03, 2019 10:47 pm

I agree with Huey that you should wait a while for a corrected 1099, and document your efforts to obtain it.

If no corrected 1099 is issued and I was 100% sure of the error, I would do the following: list on Schedule B the overstated interest income amount from Republic Bank as shown on the erroneous 1099-INT, and directly below that enter a second Republic Bank amount with a description "interest adjustment" or something similar and list a negative $190, so the net of two amounts is the correct interest income.

Doing it this way reports the correct income and also very likely prevents the inconvenience of an IRS tax notice from their computer-matching program. The IRS is unlikely to question the somewhat insignificant "interest adjustment" item, but I might add a brief statement to the back of the tax return explaining the adjustment item.

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need403bhelp
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Re: Incorrect 1099-INT [Insight], options besides calling bank?

Post by need403bhelp » Sun Feb 03, 2019 10:59 pm

MarkNYC wrote:
Sun Feb 03, 2019 10:47 pm
I agree with Huey that you should wait a while for a corrected 1099, and document your efforts to obtain it.

If no corrected 1099 is issued and I was 100% sure of the error, I would do the following: list on Schedule B the overstated interest income amount from Republic Bank as shown on the erroneous 1099-INT, and directly below that enter a second Republic Bank amount with a description "interest adjustment" or something similar and list a negative $190, so the net of two amounts is the correct interest income.

Doing it this way reports the correct income and also very likely prevents the inconvenience of an IRS tax notice from their computer-matching program. The IRS is unlikely to question the somewhat insignificant "interest adjustment" item, but I might add a brief statement to the back of the tax return explaining the adjustment item.
Thanks so much for sharing your suggestion and possible way to report everything if I do not receive a corrected 1099-INT.

Re "brief statement to the back of the tax return explaining the adjustment item." I usually use Turbotax and file electronically. However, I have also previously printed out the return and mailed it in with a letter at the beginning (we were treating my non-resident wife as a resident for tax purposes at the time, and the instructions specified a letter needed to be sent). Do I just similarly print out my return and include a typed and signed cover letter, or is there some other formal way to add a "brief statement to the back of the tax return"? Or did you simply mean to make such typed & signed letter but put it in the very back instead of the front of the packet that I mail to the IRS?

Thanks again!

MotoTrojan
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Re: Incorrect 1099-INT [Insight], options besides calling bank?

Post by MotoTrojan » Sun Feb 03, 2019 11:08 pm

Bank of Chicago didn't have record of your account? Maybe I need to make my cancellation a higher priority...

I'll have to go online too and double check the validity of my 1099. It was $2X so I didn't care much to verify.

MarkNYC
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Re: Incorrect 1099-INT [Insight], options besides calling bank?

Post by MarkNYC » Sun Feb 03, 2019 11:10 pm

need403bhelp wrote:
Sun Feb 03, 2019 10:59 pm
MarkNYC wrote:
Sun Feb 03, 2019 10:47 pm
I agree with Huey that you should wait a while for a corrected 1099, and document your efforts to obtain it.

If no corrected 1099 is issued and I was 100% sure of the error, I would do the following: list on Schedule B the overstated interest income amount from Republic Bank as shown on the erroneous 1099-INT, and directly below that enter a second Republic Bank amount with a description "interest adjustment" or something similar and list a negative $190, so the net of two amounts is the correct interest income.

Doing it this way reports the correct income and also very likely prevents the inconvenience of an IRS tax notice from their computer-matching program. The IRS is unlikely to question the somewhat insignificant "interest adjustment" item, but I might add a brief statement to the back of the tax return explaining the adjustment item.
Thanks so much for sharing your suggestion and possible way to report everything if I do not receive a corrected 1099-INT.

Re "brief statement to the back of the tax return explaining the adjustment item." I usually use Turbotax and file electronically. However, I have also previously printed out the return and mailed it in with a letter at the beginning (we were treating my non-resident wife as a resident for tax purposes at the time, and the instructions specified a letter needed to be sent). Do I just similarly print out my return and include a typed and signed cover letter, or is there some other formal way to add a "brief statement to the back of the tax return"? Or did you simply mean to make such typed & signed letter but put it in the very back instead of the front of the packet that I mail to the IRS?

Thanks again!
Not familiar with Turbotax, but I would assume there is a way to attach a statement in the back as part of the tax return. I would not create a separate cover letter to be included with the filing of the return.

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need403bhelp
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Re: Incorrect 1099-INT [Insight], options besides calling bank?

Post by need403bhelp » Sun Feb 03, 2019 11:20 pm

MotoTrojan wrote:
Sun Feb 03, 2019 11:08 pm
Bank of Chicago didn't have record of your account? Maybe I need to make my cancellation a higher priority...

I'll have to go online too and double check the validity of my 1099. It was $2X so I didn't care much to verify.
Yes, Republic Bank of Chicago's number was on the 1099-INT, so I called them. I told them the account number - no record. I gave them my SSN - no record. They then asked if it was an Insight account and promptly transferred me to Insight customer service. Sounds like Insight just prints the 1099-INT's themselves on RBoC's forms?

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need403bhelp
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Re: Incorrect 1099-INT [Insight], options besides calling bank?

Post by need403bhelp » Sun Feb 03, 2019 11:22 pm

MarkNYC wrote:
Sun Feb 03, 2019 11:10 pm
need403bhelp wrote:
Sun Feb 03, 2019 10:59 pm
MarkNYC wrote:
Sun Feb 03, 2019 10:47 pm
I agree with Huey that you should wait a while for a corrected 1099, and document your efforts to obtain it.

If no corrected 1099 is issued and I was 100% sure of the error, I would do the following: list on Schedule B the overstated interest income amount from Republic Bank as shown on the erroneous 1099-INT, and directly below that enter a second Republic Bank amount with a description "interest adjustment" or something similar and list a negative $190, so the net of two amounts is the correct interest income.

Doing it this way reports the correct income and also very likely prevents the inconvenience of an IRS tax notice from their computer-matching program. The IRS is unlikely to question the somewhat insignificant "interest adjustment" item, but I might add a brief statement to the back of the tax return explaining the adjustment item.
Thanks so much for sharing your suggestion and possible way to report everything if I do not receive a corrected 1099-INT.

Re "brief statement to the back of the tax return explaining the adjustment item." I usually use Turbotax and file electronically. However, I have also previously printed out the return and mailed it in with a letter at the beginning (we were treating my non-resident wife as a resident for tax purposes at the time, and the instructions specified a letter needed to be sent). Do I just similarly print out my return and include a typed and signed cover letter, or is there some other formal way to add a "brief statement to the back of the tax return"? Or did you simply mean to make such typed & signed letter but put it in the very back instead of the front of the packet that I mail to the IRS?

Thanks again!
Not familiar with Turbotax, but I would assume there is a way to attach a statement in the back as part of the tax return. I would not create a separate cover letter to be included with the filing of the return.
I see. I guess I'll ask a different question - if you were to file a paper return, where would you put such a statement? Thanks!

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Rainier
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Re: Incorrect 1099-INT [Insight], options besides calling bank?

Post by Rainier » Mon Feb 04, 2019 6:35 am

Bank 1 Name: "Republic Bank of Chicago" - Actual interest on incorrect 1099

Bank 2 Name: "Adjustment for incorrect 1099" - ($-190)

Done

Katietsu
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Re: Incorrect 1099-INT [Insight], options besides calling bank?

Post by Katietsu » Mon Feb 04, 2019 6:48 am

Rainier wrote:
Mon Feb 04, 2019 6:35 am
Bank 1 Name: "Republic Bank of Chicago" - Actual interest on incorrect 1099

Bank 2 Name: "Adjustment for incorrect 1099" - ($-190)

Done
This is what I would do.

Topic Author
need403bhelp
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Re: Incorrect 1099-INT [Insight], options besides calling bank?

Post by need403bhelp » Mon Feb 04, 2019 10:31 am

Katietsu wrote:
Mon Feb 04, 2019 6:48 am
Rainier wrote:
Mon Feb 04, 2019 6:35 am
Bank 1 Name: "Republic Bank of Chicago" - Actual interest on incorrect 1099

Bank 2 Name: "Adjustment for incorrect 1099" - ($-190)

Done
This is what I would do.
Thank you, both, so much for your helpful advice and detailed instructions.

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Epsilon Delta
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Re: Incorrect 1099-INT [Insight], options besides calling bank?

Post by Epsilon Delta » Mon Feb 04, 2019 3:41 pm

need403bhelp wrote:
Sun Feb 03, 2019 10:31 pm
Thanks for your suggestion. Just to be clear, I am calculating all interest credit to my account in 2018. This includes January 1, 2018, April 1, 2018, and July 1, 2018. My accounts were closed right after the interest was credited on July 1, 2018.
Is it possible that some interest was credited to you after the account was closed and is in limbo until it's old enough to go to the states lost property office?

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need403bhelp
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Re: Incorrect 1099-INT [Insight], options besides calling bank?

Post by need403bhelp » Mon Feb 04, 2019 4:42 pm

Epsilon Delta wrote:
Mon Feb 04, 2019 3:41 pm
need403bhelp wrote:
Sun Feb 03, 2019 10:31 pm
Thanks for your suggestion. Just to be clear, I am calculating all interest credit to my account in 2018. This includes January 1, 2018, April 1, 2018, and July 1, 2018. My accounts were closed right after the interest was credited on July 1, 2018.
Is it possible that some interest was credited to you after the account was closed and is in limbo until it's old enough to go to the states lost property office?
I guess, but that would be quite strange. Plus, I actually still have online access to the accounts (including the savings accounts and statements). (My accounts were closed July 1st, I called in to close my cards, I then kept secure messaging as I still had online access and they kept saying my account was closed and online access would be disabled and finally after the 5th time I stopped messaging; after 1/1 I was actually able to "re-enroll" in savings despite my card accounts being closed and can see the savings history; I was actually even able to load funds to savings as a test but I un-loaded them and do not plan to use them as it seems too risky).

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need403bhelp
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Re: Incorrect 1099-INT [Insight], options besides calling bank?

Post by need403bhelp » Mon Feb 04, 2019 5:41 pm

need403bhelp wrote:
Mon Feb 04, 2019 4:42 pm
Epsilon Delta wrote:
Mon Feb 04, 2019 3:41 pm
need403bhelp wrote:
Sun Feb 03, 2019 10:31 pm
Thanks for your suggestion. Just to be clear, I am calculating all interest credit to my account in 2018. This includes January 1, 2018, April 1, 2018, and July 1, 2018. My accounts were closed right after the interest was credited on July 1, 2018.
Is it possible that some interest was credited to you after the account was closed and is in limbo until it's old enough to go to the states lost property office?
I guess, but that would be quite strange. Plus, I actually still have online access to the accounts (including the savings accounts and statements). (My accounts were closed July 1st, I called in to close my cards, I then kept secure messaging as I still had online access and they kept saying my account was closed and online access would be disabled and finally after the 5th time I stopped messaging; after 1/1 I was actually able to "re-enroll" in savings despite my card accounts being closed and can see the savings history; I was actually even able to load funds to savings as a test but I un-loaded them and do not plan to use them as it seems too risky).
Working on Schedule B as suggested above (not going to send anything to the IRS until after the end of February), I just realized that the amount by which the interest is over-reported is EXACTLY the same as my interest on my first Insight account. One possibility could have just been they double counted that account. I guess another possibility would be someone else has an account with the exact same balance under my SSN.

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Re: Incorrect 1099-INT [Insight], options besides calling bank?

Post by need403bhelp » Mon Feb 11, 2019 3:45 pm

Thank you all, again, for your suggestions. I am still waiting on an updated 1099-INT from Insight. My likely plan, if I don't get it by this coming weekend, will be to send two certified letters with return receipt: one to an executive with Republic Bank of Chicago, one to an executive with Insight (I am tired of calling). I was easily able to find the address and name of executives at Republic Bank of Chicago, but not so much re CURRENT executives at Insight (apparently the founder sold the company to Green Dot and left several years ago). I am thinking of just sending the second letter to the CEO of Green Dot, since they own Insight. Any thoughts about this, or any suggestions re how to find the appropriate CURRENT executive (e.g., President or CEO) at Insight Card Services? Thank you!

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need403bhelp
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Re: Incorrect 1099-INT [Insight], options besides calling bank?

Post by need403bhelp » Sun Feb 17, 2019 2:16 pm

Katietsu wrote:
Mon Feb 04, 2019 6:48 am
Rainier wrote:
Mon Feb 04, 2019 6:35 am
Bank 1 Name: "Republic Bank of Chicago" - Actual interest on incorrect 1099

Bank 2 Name: "Adjustment for incorrect 1099" - ($-190)

Done
This is what I would do.
So I am now trying to enter this in TurboTax downloaded on Mac and am having a hard time doing this. TurboTax won't let me write on Schedule B under Part I - Interest Income in Forms mode. The closest I can get is by telling TurboTax I want to adjust the interest on the 1099-INT, then choosing the "Other" reason (options include nominee distribution, original issue discount (OID), amortizable bond premium (ABP), bond premium on tax-exempt, accrued interest, other, bond premium on treasury obligations, U.S. savings bond interest previously reported).

This way, on Schedule B under Part I - Interest Income it says:

Payer's Name 1: "Republic Bank of Chicago" - Actual interest on incorrect 1099 (753.22)

Payer's Name 2: "Other Adjustments" - -$189.75

Would this work, or should I find another way to report it on TurboTax if I am not able to get a corrected 1099-INT?

Thank you!

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HueyLD
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Re: Incorrect 1099-INT [Insight], options besides calling bank?

Post by HueyLD » Sun Feb 17, 2019 2:53 pm

Alternatively, you can "right click" on the Schedule B "Payer's Name" column and enter whatever description you deem appropriate. Also use right click to enter the negative adjustment amount.

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need403bhelp
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Re: Incorrect 1099-INT [Insight], options besides calling bank?

Post by need403bhelp » Sun Feb 17, 2019 3:02 pm

HueyLD wrote:
Sun Feb 17, 2019 2:53 pm
Alternatively, you can "right click" on the Schedule B "Payer's Name" column and enter whatever description you deem appropriate. Also use right click to enter the negative adjustment amount.
Thanks. It looks like on Mac it is Edit -> Override instead of right click ( https://ttlc.intuit.com/questions/18991 ... y-turbotax ), but it definitely worked. Thanks again!!!

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