Banks must report interest generated on bank accounts in excess of $10 to the Internal Revenue Service (IRS) using Form 1099-INT each year. The IRS requires this essentially so that people pay taxes on the interest they earn. Many people would undoubtedly forget to record and pay taxes on this income if this form did not exist. To record interest income, Form 1099-INT only allows for one beneficiary and one Social Security number. This means that the financial institution cannot use the same form to issue the 1099-INT to both joint account holders. Banks are also unable to transmit two 1099-INT forms with the total interest earned. This would result in the income being reported twice, which would confuse the IRS.It would also mean that two people would have to pay taxes on the same income. At this point, the bank will most likely issue a 1099-INT to the primary account holder with the total interest earned for the year. The secondary or joint account holder likely won’t receive a 1099-INT from the bank at all. Nominee interest occurs when one person receives interest on behalf of another. When it comes to taxes, the person who receives the interest has two options- full liability and split liability.