How to Fill Out IRS Form 1099-OID

IRS Form 1099-OID, titled "Original Issue Discount," is sent to those taxpayers who received an excess of an obligation's stated redemption price at maturity over its issue price; examples include bonds, debentures, notes, certificates or other debts having a term greater than one year. This article is written from the point of view of the entity filling out the 1099-OID, not the person receiving it.

Instructions

1. Call (800) TAX-FORM or visit the IRS online form ordering website (see resources below) to obtain acceptable copies of Form 1099-OID to send to recipients. Although Form 1099-OID is available for viewing online, the e-version of the form is unacceptable to send to taxpayers or the Internal Revenue Service.

2. Check the "Void" or "Corrected" box at the top of the 1099 form if applicable. Enter the Payer's name, street address, city, state, ZIP code and telephone number in the first box. The Payer is the organization or entity that paid the original issue discount (OID) money.

3. Enter the Payer's Federal identification number and the Recipient's identification number (usually a Social Security number or an EIN) in the two boxes beneath the first box. Below this, list the Recipient's name, street address (including apartment number), city, state and ZIP code. Enter the account number that is associated with this income. Check the box if the Recipient has a second Tax ID number.

4. Show the OID on the obligation for the part of the year the Recipient owned the debt in Box 1. List any other interest on this obligation that is a separate amount from the OID in Box 2. In Box 3 show the interest or principal forfeited if the Recipient withdrew the money before the maturation date of the obligation. Withhold 28% of the OID amount as a backup if the Recipient did not provide you with a Tax ID number; list this figure in Box 4.

5. Detail the CUSIP (Committee on Uniform Security Identification Procedures) number or description of the obligation in Box 5; examples may include the stock exchange, issuer, coupon rate or year of maturity. In Box 6, show the OID on a U.S. Treasury obligation for the part of the year the Recipient owned it. In Box 7, show the amount of the Recipient's share of investment expenses of a single-class REMIC (real estate mortgage investment conduit).

6. File Form 1099-OID with the IRS; also send a copy to the recipient. Check the IRS official website (see resources below) for specific instructions as to the filing deadline for Form 1099-OID; it changes annually.

Resources

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