Form 1099-Oid - Original Issue Discount Department Of Treasury

Instructions for Recipient

amount of OID to report on your return. See Pub. 1212, Guide to Original Issue

Discount (OID) Instruments, for details on how to figure the correct OID.

Original issue discount (OID) is the excess of an obligation’s stated redemption

Box 2. Shows other interest on this obligation for the year, which is an amount

price at maturity over its issue price (acquisition price for a stripped bond or

separate from the OID. If you held the obligation the entire year, report this

coupon). OID is taxable as interest over the life of the obligation. If you are the

amount as interest income on your tax return. If you disposed of the obligation

holder of an OID obligation, generally you must include an amount of OID in your

or acquired it from another holder during the year, see Pub. 550 for reporting

gross income each year you hold the obligation. Obligations that may have OID

instructions. If there is an amount in both boxes 2 and 8, the amount in box 2 is

include a bond, debenture, note, certificate, or other evidence of indebtedness

interest on a U.S. Treasury obligation and is exempt from state and local income

having a term of more than 1 year. For example, the OID rules may apply to

taxes.

certificates of deposit (CDs), time deposits, bonus savings plans, and other

Box 3. Shows interest or principal forfeited if you withdrew the money before

deposit arrangements, especially if the payment of interest is deferred until

the maturity date of the obligation, such as from a CD. You may deduct this

maturity. In addition, the OID rules apply to Treasury inflation-protected

amount to figure your adjusted gross income on your income tax return. See the

securities. See Pub. 550, Investment Income and Expenses, for more

instructions for Form 1040 to see where to take the deduction.

information.

Box 4. Shows backup withholding. Generally, a payer must backup withhold if

If, as the record holder, you receive Form 1099-OID showing amounts

you did not furnish your taxpayer identification number (TIN) or you did not

belonging to another person, you are considered a nominee recipient. Complete

furnish the correct TIN to the payer. See Form W-9, Request for Taxpayer

a Form 1099-OID for each of the other owners showing the amounts allocable to

Identification Number and Certification, for information on backup withholding.

each. File Copy A of the form with the IRS. Furnish Copy B to each owner. List

Include this amount on your income tax return as tax withheld.

yourself as the “payer” and the other owner as the “recipient.” File Form(s)

1099-OID with Form 1096, Annual Summary and Transmittal of U.S. Information

Box 5. Shows the foreign tax paid. You may be able to claim this tax as a

Returns, with the Internal Revenue Service Center for your area. On Form 1096,

deduction or a credit on your Form 1040. See your Form 1040 instructions.

list yourself as the “filer.” A husband or wife is not required to file a nominee

Box 6. Shows the country or U.S. possession to which the foreign tax was paid.

return to show amounts owned by the other. If you bought or sold an obligation

Box 7. Shows the identification (CUSIP) number or description of the obligation

during the year and you are not a nominee, you are not required to issue or file

(may include the stock exchange, issuer, coupon rate, and year of maturity).

Form 1099-OID showing the OID or stated interest allocable to the seller/buyer

of the obligation.

Box 8. Shows OID on a U.S. Treasury obligation for the part of the year you

owned it. Report this amount as interest income on your federal income tax

Recipient's identification number. For your protection, this form may show

return, and see Pub. 1212 to figure any appropriate adjustments to this amount.

only the last four digits of your social security number (SSN), individual taxpayer

This OID is exempt from state and local income taxes and is not included in

identification number (ITIN), or adoption taxpayer identification number (ATIN).

box 1.

However, the issuer has reported your complete identification number to the IRS

and, where applicable, to state and/or local governments.

Box 9. Any amount shown is your share of investment expenses of a single-

class REMIC. If you file Form 1040, you may deduct these expenses on the

Account number. May show an account or other unique number the payer

“Other expenses” line of Schedule A (Form 1040) subject to the 2% limit. This

assigned to distinguish your account.

amount is included in box 2.

Box 1. Shows the OID on the obligation for the part of the year you owned it.

Box 10—12. State income tax withheld reporting.

Report the amount in box 1 as interest income on your income tax return.

However, depending on the type of debt instrument, the issue or acquisition

Future developments. For the latest information about developments related to

date, and other factors (for example, if you paid acquisition or bond premium, or

Form 1099-OID and its instructions, such as legislation enacted after they were

the obligation is a stripped bond or coupon), you may have to figure the correct

published, go to

Form 1099-Oid - Original Issue Discount Department Of Treasury - 2013 Page 5

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