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My question is -- if a financial institution issues an incorrect 1099 on which income is under-reported and the taxpayer doesn't catch it, is the taxpayer then liable for penalties and interest?

Yes, but for any penalty to apply you'd have to be talking about such a large understatement that anyone except Treasury Secretary Geithner would have noticed it.

Do they not issue, or cannot you retrieve online, periodic statements showing the accrued interest on the CD? With any CD I've ever had I could easily get the information.

Phil
Rule Your Retirement Home Fool
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