Rev. Rul. 63-272

Advice has been requested whether the payer of interest which is paid in 1963, on a savings account closed prior to October 1, 1963, is required to obtain the payee's identifying number and to report it and the amount of the payment on Form 1099, U.S. Information Return, and Form 1096, U.S. Annual Information Return.

Section 1.6109-1(b)(2)(i) of the Income Tax Regulations provides, in general, that when a return, statement, or other document with respect to any person is required to be made by another person for any period commencing after December 31, 1962, the account number or the employer identification number, as the case may be, of the person with respect to whom the return, statement, or other document is required to be made shall be (a) requested of such person by the person required to make such return, statement, or other document; (b) furnished by such person to the person required to make the return, statement, or other document; and (c) included in the return, statement, or other document by the person required to make it.

An exception to the general requirement as set forth above is provided under section 1.6109-1(b)(2)(ii) of the regulations. This exception relieves payers of the obligation of obtaining identifying numbers and including the numbers on returns, statements, or other documents, if the total amount shown on the return, statement, or document was paid to the payee prior to October 1, 1963.

The foregoing exception, however, does not relieve the payer of his responsibility for filing information returns under section 6049 of the Internal Revenue Code of 1954. That section provides, in general, that every person who makes payments of interest aggregating $10 or more to any person during any calendar year shall make a return setting forth the aggregate amount of such payments and the name and address of the person to whom paid. Section 1.6049-1(a)(1)(i) of the regulations provides that such return shall be made on Forms 1096 and 1099.

Therefore, it is held that, if the interest paid on a savings account amounts to $10 or more in the aggregate for the entire calendar year, it must be reported on Forms 1099 and 1096, even though the identifying number need not be included in the return if the total amount shown on the return was paid prior to October 1, 1963.