Specifications for submission of state and local government tax exempt bond interest information
We ask all financial institutions to report interest and dividends of $10 or more:
- earned from federally tax-exempt securities, and
- paid to individuals and trusts that have a New York State address.
This includes interest from bonds, mutual funds, money market funds, and unit investment trusts.
To prepare your report on interest from federally tax-exempt securities:
- Use Form 1099-B specifications as described in Publication 1220 (Rev. 9-2017), Specifications for Electronic Filing of Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G.
- Include the following records in your file:
- T-Transmitter Record: Identifies the transmitter of the file.
- A-Payer Record: Identifies the payer (person or institution paying the funds).
- B-Payee Record: Identifies the payee.
- C-Record: Summary of the payee B-Records.
- F-Record: Identifies the end of the transmission.
- Format these records and fields as follows:
- A-Payer Record:
- Position 26: Use code “B” to indicate return type Form 1099-B (do not use “6”).
- B-Payee Record:
- Positions 67-78: Report interest and dividend proceeds, including any accrued interest.
- Positions 556-568: Report the CUSIP number that has been assigned to the security. Right-justify and blank-fill the unused positions.
- Positions 569-607: Enter the complete name of the mutual fund, money market fund, unit investment trust, or municipal bond. Left-justify and blank-fill the unused positions.
- Positions 663-667: Report the percentage attributable to New York State, Puerto Rico, Guam, American Samoa, the U.S. Virgin Islands, and the Northern Mariana Islands. Do not use decimals or percent signs. Round after four positions (for example, 25.40% = 02540, 25.50% = 02550, 99.5% = 09950, 100.0% = 10000).
- Dollar-value fields:
- All dollar value fields are fixed length 12 numeric character fields.
- Do not use dollar signs ($) or commas.
- Right-justify, zero-fill (for example, $10,987,654.32 = ‘001098765432’; $300 = ‘000000030000’).
- Do not use decimal points (.) to indicate dollars and cents (for example, $1,234.56 = ‘000000123456’).
- Use double zeroes for cents to pad out whole dollars amounts (for example, $100 = ‘000000010000’; $5 = ‘000000000500’; $987.65 = ‘000000098765’).
You'll upload your document through your Business Online Services account. If you don't already have an account, you'll need to create an account (be sure to review our Business account creation checklist beforehand).
Once you have an account, upload your submission of state and local government bond interest information as follows:
- Log in to Online Services.
- Select the ≡ Services menu in the upper left-hand corner of your Account Summary homepage.
- Select File exchange from the menu, then File exchange from the drop-down.
- In the File upload information section on the File Exchange screen, choose Tax Exempt Bonds as your folder option.
- Select Browse to navigate to your .txt file.
- Once you locate and select your file, select Upload File.
To report corrections of a file already transmitted, submit a complete file and send an email notification to Municipal.Securities@tax.ny.gov.