We pay interest on interest bearing items such as bank accounts, utility refunds and certain court funds. Interest is paid for a period of five years from the date we receive the property. The interest rate is set by the New York State Department of Tax and Finance and is updated quarterly.
We’re required by the federal government to report certain types of payments to the Internal Revenue Service (IRS). If your refund paid within a calendar year includes:
- Interest totaling $600 or more, you’ll receive an IRS 1099INT form in January following the year your claim was paid.
- The cash value of securities, you’ll receive an IRS 1099B form for each security after your claim is completed.
- Accruals totaling $600 or more, you’ll receive an IRS 1099MISC form in January following the year your claim was paid.
- Interest and accruals earned by Non-Resident Aliens, you’ll receive an IRS 1042-S form.
We'll let you know if you need to complete an IRS W-9 form to confirm your social security number or taxpayer identification number and backup withholding status.
Any questions regarding your tax liability should be addressed with an appropriate tax specialist, especially questions about interest or miscellaneous income you receive as part of your refund(s) that is less than $600.
Foreign Interest Withholding
We must withhold income from non-resident aliens, foreign corporations, foreign partnerships, foreign trusts, foreign estates, foreign governments and international corporations. Thirty percent (30%) of interest and security-related income will be withheld unless there's a tax treaty between the U.S. and your country for tax purposes. To confirm your residency, and possibly qualify for a reduced withholding rate, submit a W-8BEN (individuals) or W-8BEN-E (Entities).