Compliance Blog

Jan 18, 2008

Free HMDA Software Available; 1099-INT Thresholds

The FFIEC has announced the availability of free HMDA data entry software, which was created by the Federal Reserve.  You can access a press release about it here.  The software is to be used with 2008 HMDA data, which will be due March 1, 2009.

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We've had calls from a number of credit unions who appear to be working on 1099-INTs.  Here is some guidance for the following situation:

Last year, member A earned $6.78 in dividends and $11.58 in interest in U.S. Savings Bonds.  Clearly, you would need to report the $11.58 in box 3 on the 1099-INT.  But what about the $6.78 in dividends?  Do you report that in box 1, since you have to file a 1099-INT anyway?

Well, a dutiful compliance officer made a call to the IRS Martinsburg Computer Center.  (They are the IRS' resident expert on 1099s and W2s.)  They indicated that you are not required to report the $6.78 in box 1 in the hypothetical situation above.  (You may, however, at your discretion.)  According to the IRS, you must report amounts in boxes 1, 3 or 8 if the amount in question is $10 or greater.

Oh, I almost forgot.  The phone number for the IRS Martinsburg Computer Center is (866)455-7438.  They've been very helpful to me in the past.