All interest income must be reported on Form 1040, unless there is a special rule that applies (such as interest on U.S. savings bonds redeemed for higher education costs). Thus, whether or not you receive Form 1099-INT, which is only required if interest payments exceed $10, you must report the interest. If interest exceeds $1,500, you must complete Schedule B and then enter the total on Form 1040.
The IRS action of fixing tax liability that sets in motion collection procedures, such as charging interest, imposing penalties, and, if necessary, seizing property.