Form FORM-1099-OID Original Issue Discount

Attention:
Do not download, print, and file Copy A with the IRS.
Copy A appears in red, similar to the official IRS form,
but is for informational purposes only. A penalty of $50 per
information return may be imposed for filing copies of forms
that cannot be scanned.
You may order these forms online at Forms and Publications
By U.S. Mail (http://www.irs.gov/formspubs) or by calling
1-800-TAX FORM (1-800-829-3676).
See IRS Publications 1141, 1167, 1179, and other IRS
resources for information about printing these tax forms.

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Page 1 of 6 Form 1099-OID (Page 2 is Blank)

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INK: Red, J-6983
Separation for 2000 Form 1099-OID Page 1
INK: Black
Separation for 2000 Form 1099-OID Page 1

9696

VOID

CORRECTED

PAYER’S name, street address, city, state, ZIP code, and telephone no.

1 Original issue discount
for 2006

OMB No. 1545-0117

$

2006

2 Other periodic interest

PAYER’S federal identification number

RECIPIENT’S identification number

1099-OID

$

Form

3 Early withdrawal penalty

4 Federal income tax withheld

$

$

RECIPIENT’S name

5 Description

Street address (including apt. no.)

6 Original issue discount on U.S. Treasury obligations

City, state, and ZIP code

7 Investment expenses

$
$
Account number (see instructions)

Form

1099-OID

2nd TIN not.

Cat. No. 14421R

Do Not Cut or Separate Forms on This Page

—

Original Issue
Discount

Copy A
For
Internal Revenue
Service Center
File with Form 1096.
For Privacy Act
and Paperwork
Reduction Act
Notice, see the
2006 General
Instructions for
Forms 1099, 1098,
5498, and W-2G.

Department of the Treasury - Internal Revenue Service

Do Not Cut or Separate Forms on This Page

Page 3 of 6 of Form 1099-OID

3

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

CORRECTED (if checked)
PAYER’S name, street address, city, state, ZIP code, and telephone no.

1 Original issue discount
for 2006*

OMB No. 1545-0117

2006

$
2 Other periodic interest

PAYER’S federal identification number

RECIPIENT’S identification number

1099-OID

$

Form

3 Early withdrawal penalty

4 Federal income tax withheld

$

$

RECIPIENT’S name

5 Description

Street address (including apt. no.)

6 Original issue discount on U.S. Treasury obligations*

City, state, and ZIP code

7 Investment expenses

$
$
Account number (see instructions)

Form

1099-OID

* This may not be the correct figure to report on your
income tax return. See instructions on the back.

(keep for your records)

Original Issue
Discount

Copy B
For Recipient
This is important tax
information and is
being furnished to the
Internal Revenue
Service. If you are
required to file a
return, a negligence
penalty or other
sanction may be
imposed on you if this
income is taxable and
the IRS determines
that it has not been
reported.

Department of the Treasury - Internal Revenue Service

Page 4 of 6 of Form 1099-OID

3

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Instructions for Recipient
Original issue discount (OID) is the excess of an obligation’s stated redemption price
at maturity over its issue price (acquisition price for a stripped bond or coupon). OID
is taxable as interest over the life of the obligation. If you are the holder of an OID
obligation, generally you must include an amount of OID in your gross income each
year you hold the obligation. Obligations that may have OID include a bond,
debenture, note, certificate, or other evidence of indebtedness having a term of more
than 1 year. For example, the OID rules may apply to certificates of deposit (CDs),
time deposits, bonus savings plans, and other deposit arrangements, especially if the
payment of interest is deferred until maturity. In addition, the OID rules apply to
Treasury inflation-indexed securities. See Pub. 550, Investment Income and Expenses,
for more information.
If, as the record holder, you receive Form 1099-OID showing amounts belonging
to another person, you are considered a nominee recipient. Complete a Form
1099-OID for each of the other owners showing the amounts allocable to each. File
Copy A of the form with the IRS. Furnish Copy B to each owner. List 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 Returns, with the Internal
Revenue Service Center for your area. On Form 1096, list yourself as the “filer.” A
husband or wife is not required to file a nominee return to show amounts owned by
the other. If you bought or sold an obligation during the year and you are not a
nominee, you are not required to issue or file Form 1099-OID showing the OID or
stated interest allocable to the seller/buyer of the obligation.
Account number. May show an account or other unique number the payer assigned
to distinguish your account.
Box 1. Shows the OID on the obligation for the part of the year you owned it. 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 date, and other
factors (for example, if you paid acquisition or bond premium, or the obligation is a

stripped bond or coupon), you may have to figure the correct 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.
Box 2. Shows other interest on this obligation for the year, which is an amount
separate from the OID. If you held the obligation the entire year, report this amount
as interest income on your tax return. If you disposed of the obligation or acquired it
from another holder during the year, see Pub. 550 for reporting instructions. If there
is an amount in both boxes 2 and 6, the amount in box 2 is interest on a U.S.
Treasury obligation and is exempt from state and local income taxes.
Box 3. Shows interest or principal forfeited if you withdrew the money before the
maturity date of the obligation, such as from a CD. You may deduct this amount to
figure your adjusted gross income on your income tax return. See the instructions for
Form 1040 to see where to take the deduction.
Box 4. Shows backup withholding. Generally, a payer must backup withhold at a
28% rate if you did not furnish your taxpayer identification number (TIN) or you did
not furnish the correct TIN to the payer. See Form W-9, Request for Taxpayer
Identification Number and Certification, for information on backup withholding.
Include this amount on your income tax return as tax withheld.
Box 5. Shows the identification number (CUSIP number) or description of the
obligation. The description may include the stock exchange, issuer, coupon rate, and
year of maturity.
Box 6. 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 return, and see
Pub. 1212 to figure any appropriate adjustments to this amount. This OID is exempt
from state and local income taxes and is not included in box 1.
Box 7. 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 “Other
expenses” line of Schedule A (Form 1040) subject to the 2% limit. This amount is
included in box 2.

Page 5 of 6 of Form 1099-OID

3

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

VOID

CORRECTED

PAYER’S name, street address, city, state, ZIP code, and telephone no.

1 Original issue discount
for 2006

OMB No. 1545-0117

2006

$
2 Other periodic interest

PAYER’S federal identification number

RECIPIENT’S identification number

1099-OID

$

Form

3 Early withdrawal penalty

4 Federal income tax withheld

$

$

Street address (including apt. no.)

6 Original issue discount on U.S. Treasury obligations

City, state, and ZIP code

7 Investment expenses

$
$

Form

1099-OID

Copy C
For Payer

5 Description

RECIPIENT’S name

Account number (see instructions)

Original Issue
Discount

2nd TIN not.

For Privacy Act
and Paperwork
Reduction Act
Notice, see the
2006 General
Instructions for
Forms 1099,
1098, 5498,
and W-2G.

Department of the Treasury - Internal Revenue Service

Page 6 of 6 of Form 1099-OID

3

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Instructions for Payers
General and specific form instructions are provided as
separate products. The products you should use to
complete Form 1099-OID are the 2006 General
Instructions for Forms 1099, 1098, 5498, and W-2G
and the 2006 Instructions for Forms 1099-INT and
1099-OID. A chart in the general instructions gives a
quick guide to which form must be filed to report a
particular payment. To order these instructions and
additional forms, call 1-800-TAX-FORM
(1-800-829-3676).
Caution: Because paper for ms are scanned dur ing
processing, you cannot file with the IRS For ms 1096,
1098, 1099, or 5498 that you download and pr int from
the IRS website.

Due dates. Furnish Copy B of this form to the
recipient by January 31, 2007.
File Copy A of this form with the IRS by
February 28, 2007. If you file electronically, the due
date is April 2, 2007. To file electronically, you must
have software that generates a file according to the
specifications in Pub. 1220, Specifications for Filing
Forms 1098, 1099, 5498, and W-2G Electronically or
Magnetically. IRS does not provide a fill-in form option.
Foreign recipient. If the recipient is a nonresident
alien, you may have to withhold federal income tax and
file Form 1042-S, Foreign Person’s U.S. Source
Income Subject to Withholding. See the Instructions for
Form 1042-S and Pub. 515, Withholding of Tax on
Nonresident Aliens and Foreign Entities.