- Membership
- Certification
- Events
- Community
- About
- Help
Reporting Interest on Local Government Refunds for 1099-INT
January 15, 2025
Q.
We are a local government, and we periodically issue refunds for business, professional & occupational licenses and for real estate tax overpayments. Sometimes we also pay interest with the refund.
Some IRS guidance regarding obligations (that are not bonds) issued by a political subdivision says that interest on a state or local government obligation may be tax exempt even if the obligation is not a bond.
My question is, is the interest we're paying with these refunds reportable on form…
Naturally, this forum doesn’t allow the kind of full information exchange necessary for the Institute of Finance & Management (IOFM) to provide legal advice and the Expert is not a tax attorney in any event. Please understand that the nature of our responses are limited by these constraints as well as the site’s Terms of Use. If you have further questions or suggestions about how we can improve IOFM, please let us know.
Ask The Expert is a member resource of IOFM and all advice provided is subject to site’s Terms of Use.
What are you waiting for?
