Interest Income

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Product

Instructions for Forms 1099-INT and 1099-OID

Title

2014 Instructions for Forms 1099-INT and 1099-OID

Tax year

2014

Processing year

2015

This is the First
circulation of this product for your review and comments. This circulation can be used to support any necessary work requests.
We have reviewed this product and propose the following. For circulations of forms, our UWR-impact review included the instructions.
No changes that would impact a Unified Work Request (UWR) (other than Modernized e-File (MeF) stylesheet changes).
Changes that may impact a UWR as a result of:
Legislation (enter P.L. number)
Chief Counsel Guidance
Commissioner mandate (describe)
A discretionary program
change initiated by (OD)
Signature of Approving Official

`xÄÉwç ZA WxiÉx

Digitally signed by GH1LB
DN: cn=GH1LB, email=Melody.G.
[email protected]
Date: 2013.05.30 13:58:47 -04'00'

Circulation signature date

5/30/2013

Description of Major Changes

We updated the dates as appropriate.

Comments: Comments are due 30 days after the date this circulation is signed and issued, unless a different date is specified here:
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Comments should be sent via email to both the Tax Law Specialist and Reviewer listed below. We will accept comments after the due date, but may not
be able to consider any comments (timely or not) for this revision if implementing the comments would require a late UWR. If we need to make
significant changes based on comments or other new information received, we normally will issue a subsequent circulation of this product; otherwise,
these changes are final unless indicated otherwise in the Description of Major Changes.
Tax Law Specialist

Janice Y. Martin

Reviewer

Melody G. DeVoe

Email address

[email protected]

Email address

[email protected]

Form 14216 (4-2012)

Catalog Number 57440M

publish.no.irs.gov

Department of the Treasury-Internal Revenue Service

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2014

Instructions for Forms
1099-INT and 1099-OID

Department of the Treasury
Internal Revenue Service

Interest Income and Original Issue Discount
Section references are to the Internal Revenue Code
unless otherwise noted.

Future Developments

For the latest information about developments related to
Forms 1099-INT and 1099-OID and their instructions,
such as legislation enacted after they were published, go
to www.irs.gov/form1099int or www.irs.gov/form1099oid.

Reminder

In addition to these specific instructions, you should also
use the 2014 General Instructions for Certain Information
Returns. Those general instructions include information
about the following topics.
Who must file (nominee/middleman).
When and where to file.
Electronic reporting requirements.
Corrected and void returns.
Statements to recipients.
Taxpayer identification numbers.
Backup withholding.
Penalties.
Other general topics.
You can get the general instructions at
www.irs.gov.form1099int or www.irs.gov/form1099oid or
by calling 1-800-TAX-FORM (1-800-829-3676).

Specific Instructions for Form
1099-INT

File Form 1099-INT, Interest Income, for each person:
1. To whom you paid amounts reportable in boxes 1,
3, and 8 of at least $10 (or at least $600 of interest paid in
the course of your trade or business described in the
instructions for Box 1. Interest Income, later),
2. For whom you withheld and paid any foreign tax on
interest, or
3. From whom you withheld (and did not refund) any
federal income tax under the backup withholding rules
regardless of the amount of the payment.
Report only interest payments made in the course of
your trade or business including federal, state, and local
government agencies and activities deemed nonprofit, or
for which you were a nominee/middleman. Report
tax-exempt interest on Form 1099-INT. You do not need
to report tax-exempt interest that is original issue discount
(OID). Report interest that is taxable OID in box 1 or 8 of
Form 1099-OID, Original Issue Discount, not on Form
1099-INT. Report exempt-interest dividends from a
mutual fund or other RIC on Form 1099-DIV.

May 30, 2013

Nonresident aliens. If you pay U.S. bank deposit
interest of at least $10 to certain nonresident alien
individuals, report the interest on Form 1042-S, Foreign
Person's U.S. Source Income Subject to Withholding. To
determine whether an information return is required for
original issue discount, see Treasury Regs. 1.6049-5(f)
and 1.6049-8(a). This interest may be subject to backup
withholding. See the Instructions for Form 1042-S. Also
see Rev. Proc. 2012-24, 2012-20 I.R.B. 913 available at
www.irs.gov/irb/2012-20_IRB/ar11.html.
Exceptions to reporting. No Form 1099-INT must be
filed for payments made to exempt recipients or to interest
excluded from reporting.
Exempt recipients. You are not required to file Form
1099-INT for payments made to certain payees including
but not limited to a corporation, a tax-exempt organization,
any IRA, Archer MSA, Medicare Advantage MSA, health
savings account (HSA), a U.S. agency, a state, the District
of Columbia, a U.S. possession, a registered securities or
commodities dealer, nominees or custodians, brokers, or
notional principal contract (swap) dealers. For additional
exempt recipients, see Regulations section 1.6049-4 for
more information.
Interest excluded from reporting. You are not
required to file Form 1099-INT for interest on an obligation
issued by an individual, interest on amounts from sources
outside the United States paid outside the United States
by a non-U.S. payer or non-U.S. middleman, certain
portfolio interest, interest on an obligation issued by an
international organization and paid by that organization,
and payments made to a foreign beneficial owner or
foreign payee. See Regulations section 1.6049-5 for more
information.
Other exception. Do not report tax-deferred interest,
such as interest that is earned but not distributed from an
IRA.
When is a payment made? Generally, interest is paid
when it is credited or set apart for a person without any
substantial limitation or restriction as to the time, manner,
or condition of payment. The interest must be made
available so that it may be drawn on at any time and its
receipt brought within the control and disposition of the
person.
For payments made on obligations subject to
transactional reporting (for example, savings bonds,
interest coupons, and other demand obligations), interest
is paid at the time the obligation is presented for payment.
For example, interest on a coupon detached from a bond
is paid when it is presented for payment.
For rules regarding when interest earned by a trust
interest holder (TIH) in a widely held fixed investment trust
(WHFIT) is reportable, see Regulations section 1.671-5.

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are paid or credited to the person's account by savings
and loan associations, mutual savings banks not having
capital stock represented by shares, building and loan
associations, cooperative banks, homestead
associations, credit unions, or similar organizations.
Include interest on bank deposits, accumulated dividends
paid by a life insurance company, indebtedness (including
bonds, debentures, notes, and certificates other than
those of the U.S. Treasury) issued in registered form or of
a type offered to the public, or amounts from which you
withheld federal income tax or foreign tax. In addition,
report interest of $10 or more attributable to a trust interest
holder (TIH) of a widely held fixed investment trust
(WHFIT), or accrued by a real estate mortgage investment
conduit (REMIC), a financial asset securitization
investment trust (FASIT) regular interest holder, or paid to
a collateralized debt obligation (CDO) holder, as
explained later.

Reporting interest and OID. If you are reporting interest
and original issue discount (OID) on any obligation, you
may report both the taxable interest and the OID on Form
1099-OID. It is not necessary to file both Forms 1099-INT
and 1099-OID. On Form 1099-OID, report the interest in
box 2 and the OID in box 1 or 8. However, you may
choose to report the interest on Form 1099-INT and the
OID on Form 1099-OID.
Statements to recipients. If you are required to file
Form 1099-INT, you must furnish a statement to the
recipient. For more information about the requirement to
furnish an official form or acceptable substitute statement
to recipients, see part M in the 2014 General Instructions
for Certain Information Returns. If you have furnished
Forms 1099-INT to a recipient for amounts received
during the year at the time of the transactions, such as you
might have done for window transactions, do not include
these same amounts in a Form 1099-INT furnished to the
same recipient for other payments during the year.

Also include interest of $600 or more paid in the course
of your trade or business not meeting the above criteria,
such as interest on delayed death benefits paid by a life
insurance company, interest received with damages,
interest on a state or federal income tax refund, or interest
attributable to a swap with significant nonperiodic
payments.

Truncating recipient’s identification number on
paper payee statements. Pursuant to proposed
regulations §301.6109-4 (REG-148873-09), all filers of
Form 1099-INT may truncate a recipient’s identification
number (social security number (SSN), individual
taxpayer identification number (ITIN), or adoption
taxpayer identification number (ATIN)) on payee
statements. See part M in the 2014 General Instructions
for Certain Information Returns.

Include in box 1 any accrued interest on bonds sold
between interest dates (or on a payment date). Also show
OID on short-term obligations of 1 year or less and
interest on all bearer certificates of deposit.

Account number. The account number is required if you
have multiple accounts for a recipient for whom you are
filing more than one Form 1099-INT. Additionally, the IRS
encourages you to designate an account number for all
Forms 1099-INT that you file. See part L in the 2014
General Instructions for Certain Information Returns.

Do not include in box 1 interest on tax-free covenant
bonds or dividends from money market funds (which are
reportable on Form 1099-DIV). Do not include any
description in box 1.
Interest to holders of tax credit bonds. Report
amounts of $10 or more paid on the following tax credit
bonds.
Clean renewable energy bonds.
Qualified forestry conservation bonds.
New clean renewable energy bonds.
Qualified energy conservation bonds.
Qualified zone academy bonds.
Qualified school construction bonds.
Build America bonds.
Treat these amounts as paid on the credit allowance date.
The credit allowance dates are March 15, June 15,
September 15, December 15, and the last day on which
the bond is outstanding. For bonds issued during the
3-month period ending on a credit allowance date and for
bonds which are redeemed or mature, the amount of the
credit is determined ratably based on the portion of the
3-month period during which the bond is outstanding.
Generally, interest paid is not required to be reported to
the list of recipients below. However, if they are holders of
the tax credit bonds listed above, the interest must be
reported.
A corporation,
A dealer in securities or commodities required to
register as such under the laws of the United States, a
state, the District of Columbia, or a possession of the
United States,
A real estate investment trust as defined in section 856,

2nd TIN not. You may enter an “X” in this box if you were
notified by the IRS twice within 3 calendar years that the
payee provided an incorrect taxpayer identification
number (TIN). If you mark this box, the IRS will not send
you any further notices about this account. However, if
you received both IRS notices in the same year, or if you
received them in different years but they both related to
information returns filed for the same year, do not check
the box at this time. For purposes of the
two-notices-in-3-years rule, you are considered to have
received one notice. You are not required to send a
second “B” notice upon receipt of the second notice. See
part N in the 2014 General Instructions for Certain
Information Returns for more information.
For information on the TIN Matching System
offered by the IRS, see Items You Should Note in
the 2014 General Instructions for Certain
Information Returns.

TIP

Payer's RTN (optional). If you are a financial institution
that wishes to participate in the program for direct deposit
of refunds, you may enter your routing and transit number
(RTN).

Box 1. Interest Income

Enter interest not included in box 3. Include amounts of
$10 or more, whether or not designated as interest, that
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these bonds sold between interest dates (or on a payment
date).

An entity registered at all times during the tax year
under the Investment Company Act of 1940,
A common trust fund as defined in section 584(a), or
Any trust which is exempt from tax under section
664(c).

Any exempt-interest dividends from a mutual fund or
other RIC are reported on Form 1099-DIV.
No information reporting for tax-exempt OID under
section 6049 will be required until such time as the IRS
and Treasury provide future guidance.

Box 2. Early Withdrawal Penalty

Enter interest or principal forfeited because of an early
withdrawal of time deposits, such as an early withdrawal
from a certificate of deposit (CD), that is deductible from
gross income by the recipient. Do not reduce the amount
reported in box 1 by the amount of the forfeiture. For
detailed instructions for determining the amount of
forfeiture deductible by the depositor, see Rev. Ruls.
75-20, 1975-1 C.B. 29, and 75-21, 1975-1 C.B. 367.

Include specified private activity bond interest in box 9
and in the total for box 8. See the instructions for box 9
next.

Box 9. Specified Private Activity Bond Interest

Enter interest of $10 or more of interest from specified
private activity bonds. Generally, “specified private activity
bond” means any private activity bond defined in section
141 and issued after August 7, 1986. See section 57(a)(5)
for more details. Also see the Instructions for Form 6251,
Alternative Minimum Tax—Individuals, available at
www.irs.gov/form6251.

Box 3. Interest on U.S. Savings Bonds and
Treas. Obligations

Enter interest on U.S. Savings Bonds, Treasury bills,
Treasury notes, and Treasury bonds. Do not include in
box 1.

Box 10. Tax-Exempt Bond CUSIP No.

If you make payment on a U.S. Savings Bond or other
U.S. obligation on which interest is reportable, enter your
name, address, and federal identification number on Form
1099-INT and Form 1096, Annual Summary and
Transmittal of U.S. Information Returns, not those of the
U.S. Treasury Department or the Bureau of Public Debt.

For single bonds or accounts containing a single bond,
enter the CUSIP number of the tax-exempt bond for which
tax-exempt interest is reported in box 8. If the tax-exempt
interest is reported in the aggregate for multiple bonds or
accounts, enter “various.” If a CUSIP number was not
issued for the tax-exempt bond, leave box 10 blank.

Box 4. Federal Income Tax Withheld

Box 11. State

Enter backup withholding. For example, if a recipient does
not furnish its TIN to you in the manner required, you must
backup withhold at a 28% rate on payments required to be
reported in box 1 (which may be reduced by the amount
reported in box 2), box 3, and box 8 on this form.

Enter the two letter postal abbreviation of the state for
which state income taxes are withheld.

Box 12. State Identification No.

Enter the payer's state identification number.

For information on requesting the recipient's TIN, see
part J in the 2014 General Instructions for Certain
Information Returns.

Box 13. State Tax Withheld

Enter the state income tax withheld on the interest
payments reported on this form.

Box 5. Investment Expenses

For single-class REMICs only, see Box 5. Investment
Expenses under Rules for REMICs, FASITs, and Issuers
of CDOs, later.

Rules for Widely Held Fixed Investment Trusts
(WHFITs)

Trustees and middlemen must report the gross amount of
interest attributable to the trust interest holder (TIH) for the
calendar year on Form 1099-INT if that amount exceeds
$10. If the trustee provides WHFIT information using the
safe harbor rules in Regulations section 1.671-5(f)(1) or
(g)(1), the trustee or middleman must determine the
amounts reported on Form 1099-INT under Regulations
section 1.671-5(f)(2) or (g)(2), as appropriate.

Box 6. Foreign Tax Paid

Enter any foreign tax paid on interest. Report this amount
in U.S. dollars.

Box 7. Foreign Country or U.S. Possession

Enter the name of the foreign country or U.S. possession
for which the foreign tax was paid and reported in box 6.

Requirement to furnish a tax information statement
to the TIH. A tax information statement that includes the
information provided to the IRS on Form 1099-INT, as well
as additional information identified in Regulations section
1.671-5(e) must be provided to TIHs. The written tax
information statement must be furnished to the TIH by
March 15. The amount of an item of a trust expense that
is attributable to a TIH must be included on the tax
information statement provided to the TIH and is not
required to be included in box 5 on the Form 1099-INT.
WHFIT interest income information may be included in
summary totals reported to the IRS and the TIH.

Box 8. Tax-Exempt Interest

Enter interest of $10 or more that is credited or paid to the
person's account if that interest is used to finance
government operations and is issued by a state, the
District of Columbia, a U.S. possession, an Indian tribal
government, or a political subdivision. A political
subdivision includes port authorities, toll road
commissions, utility services authorities, community
redevelopment agencies, and qualified volunteer fire
departments. Include in box 8 any accrued interest on
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information specified in Regulations section 1.6049-7(f)
(3). Also see Regulations section 1.6049-7(f)(3)(ii) for
information that may be required to be reported to a real
estate investment trust (REIT) that holds a REMIC regular
interest.

Information about WHFIT interest income may also be
included in a composite statement furnished to the TIH.
For more filing requirements, see the 2014 General
Instructions for Certain Information Returns.

Rules for REMICs, FASITs, and Issuers of CDOs

A single-class REMIC (as defined in Temporary
Regulations section 1.67-3T(a)(2)(ii)(B)) must include in
the statement the investment expenses paid or accrued
during each calendar quarter by the REMIC for which the
REMIC is allowed a deduction under section 212 and the
proportionate share of those investment expenses
allocated to the regular interest holder.

These reporting rules apply only to FASITs in
existence on October 22, 2004, to the extent that
CAUTION
regular interests issued by the FASIT before that
date continue to remain outstanding in accordance with
the original terms of issue.

!

REMICs, holders of ownership interests in FASITs,
issuers of CDOs, and any broker or middleman who holds
as a nominee a REMIC or FASIT regular interest or CDO
must file Form 1099-INT. The form is used to report
interest of $10 or more, other than OID, accrued to a
REMIC or FASIT regular interest holder during the year or
paid to a holder of a CDO. If you are also reporting OID,
this interest and the OID can be reported on Form
1099-OID. You do not have to file both Forms 1099-INT
and 1099-OID.

The statement must be furnished to holders by March
15. To meet the statement requirement, you may furnish a
copy of Form 1099-INT and a separate statement
containing the additional information to the REMIC or
FASIT regular interest holder or CDO holder.
For information about reporting income to REMIC
residual interest holders, see the instructions for
Schedule Q (Form 1066), Quarterly Notice to Residual
Interest Holder of REMIC Taxable Income or Net Loss
Allocation, in the separate Instructions for Form 1066,
available at www.irs.gov/form1066.

You are not required to file or issue Form 1099-INT for
exempt recipients including but not limited to the
following.
A corporation.
A broker.
A middleman/nominee.
A financial institution.
Any IRA, Archer MSA, Medicare Advantage MSA, or
HSA.
A tax-exempt organization.

Form 8811 and Reporting by Brokers or
Middlemen
REMICs and issuers of CDOs must also file Form 8811,
Information Return for Real Estate Mortgage Investment
Conduits (REMICs) and Issuers of Collateralized Debt
Obligations, within 30 days after the start-up date of the
REMIC or issue date of a CDO. The IRS will use the
information on Forms 8811 to update Pub. 938, Real
Estate Mortgage Investment Conduits (REMICs)
Reporting Information, for use by certain brokers,
middlemen, corporations, and others specified in
Regulations section 1.6049-7(e)(4). Pub. 938 is available
at www.irs.gov/pub938.

For additional exempt recipients, see Regulations
section 1.6049-7(c).

Box 1. Interest Income
Report in box 1 the amount of interest, other than OID,
accrued to each REMIC or FASIT regular interest holder
or paid to a CDO holder for the period during the year for
which the return is made. If you are a single-class REMIC
(as defined in Temporary Regulations section 1.67-3T(a)
(2)(ii)(B)), increase the amount otherwise reportable in
box 1 by the regular interest holder's share of investment
expenses of the REMIC for the year. No amount should
be reported in box 3.

For the requirements that a REMIC or CDO issuer or a
broker or middleman who holds a REMIC or FASIT
regular interest or a CDO furnish certain information on
request, see Regulations sections 1.6049-7(e) and
1.6049-7(f)(7).

Specific Instructions for Form
1099-OID

Box 5. Investment Expenses
Enter the regular interest holder's pro rata share of
investment expenses deductible by a single-class REMIC.

File Form 1099-OID, Original Issue Discount, if the original
issue discount (OID) includible in gross income is at least
$10 and you are any of the following:
An issuer with any bond outstanding or other evidence
of indebtedness in registered or bearer form issued with
OID;
An issuer of a certificate of deposit (CD) made,
purchased, or renewed after 1970 if the CD has OID and a
term of more than 1 year (see Caution, later);
A financial institution having other deposit
arrangements, such as time deposits or bonus-savings
plans, if the arrangements have OID and a term of more
than 1 year;

Statements to Holders
For each Form 1099-INT you are required to file, you must
furnish a statement to the REMIC or FASIT regular
interest holder or CDO holder identified on the form. The
statement must contain the information shown on Form
1099-INT, including the legend shown on Copy B of the
official Form 1099-INT, and an indication that these items
are being furnished to the IRS. The statement also must
show the information specified in Regulations section
1.6049-7(f)(2)(i). In addition, the statement furnished by a
REMIC must show, for each calendar quarter, the
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A broker or other middleman holding an OID obligation,
including CDs, as nominee for the actual owner;
A trustee or middleman of a WHFIT or widely held
mortgage trust (WHMT); or
A real estate mortgage investment conduit (REMIC), a
holder of an ownership interest in a financial asset
securitization investment trust (FASIT), or an issuer of a
collateralized debt obligation (CDO).

!

CAUTION

Reporting interest and OID. If you are reporting stated
interest and OID on an obligation, you may report both the
taxable interest and the OID on Form 1099-OID. It is not
necessary to file both Forms 1099-INT and 1099-OID. On
Form 1099-OID, report the interest in box 2 and the OID in
box 1 or 8. You may choose to report the interest on Form
1099-INT and the OID on Form 1099-OID. However, you
cannot report tax-exempt interest on Form 1099-OID. See
Box 8. Tax-Exempt Interest, earlier.

Also, file Form 1099-OID for any person for whom you
withheld and paid any foreign tax on OID or from whom
you withheld (and did not refund) any federal income tax
under the backup withholding rules even if the amount of
the OID is less than $10.

Statements to recipients. If you are required to file
Form 1099-OID, you must furnish a statement to the
recipient. For more information about the requirement to
furnish an official form or acceptable substitute statement
to recipients, see part M in the 2014 General Instructions
for Certain Information Returns.

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). A discount of less than 1 4 of 1% of the stated
redemption price at maturity, multiplied by the number of
full years from the date of issue to maturity, is considered
to be zero.

Truncating recipient’s identification number on
paper payee statements. Pursuant to proposed
regulations §301.6109-4 (REG-148873-09), all filers of
Form 1099-OID may truncate a recipient’s identification
number (social security number (SSN), individual
taxpayer identification number (ITIN), or adoption
taxpayer identification number (ATIN)) on payee
statements. See part M in the 2014 General Instructions
for Certain Information Returns.

Reporting OID. You must prepare a Form 1099-OID for
each person who is a holder of record of the obligation if
the OID includible in the holder's gross income is at least
$10. See the instructions for box 1 on this page.
Ordinarily, you will file only one Form 1099-OID for the
depositor or holder of a particular obligation for the
calendar year. If a person holds more than one discount
obligation, issue a separate Form 1099-OID for each
obligation. However, if a person holds more than one
certificate of the same issue for the same period of time
during the calendar year, and if Form 1099-OID amounts
are proportional, you may treat all such certificates as one
discount obligation and file a single Form 1099-OID.
For information about how to compute OID, see
sections 1271–1275 and their regulations.
If you are a broker or middleman who holds a bank CD
as nominee, whether or not you sold the CD to the owner,
you must determine the amount of OID includible in the
income of the owner, if any, and report it on Form
1099-OID.
Pub. 1212, Guide to Original Issue Discount (OID)
Instruments, contains information on certain outstanding
publicly offered discount obligations. It is available on line
at www.irs.gov/pub1212.
Issuers of certain publicly offered debt instruments
having OID must file Form 8281, Information Return for
Publicly Offered Original Issue Discount Instruments,
within 30 days after the date of issuance. The information
provided on that form will enable the IRS to update Pub.
1212. See Form 8281, available at www.irs.gov/form8281
for details.

Account number. The account number is required if you
have multiple accounts for a recipient for whom you are
filing more than one Form 1099-OID. Additionally, the IRS
encourages you to designate an account number for all
Forms 1099-OID that you file. See part L in the 2014
General Instructions for Certain Information Returns.
2nd TIN not. You may enter an “X” in this box if you were
notified by the IRS twice within 3 calendar years that the
payee provided an incorrect taxpayer identification
number (TIN). If you mark this box, the IRS will not send
you any further notices about this account. However, if
you received both IRS notices in the same year, or if you
received them in different years but they both related to
information returns filed for the same year, do not check
the box at this time. For purposes of the two-notices-in-3years rule, you are considered to have received one
notice. You are not required to send a second “B” notice
upon receipt of the second notice. See part N in the 2014
General Instructions for Certain Information Returns for
more information.
For information on the TIN Matching System
offered by the IRS, see Items You Should Note in
the 2014 General Instructions for Certain
Information Returns.

TIP

Exceptions. You are not required to file Form 1099-OID
for payments made to certain payees including a
corporation, a tax-exempt organization, any IRA, an
Archer MSA, Medicare Advantage MSA, HSA, a U.S.
agency, a state, the District of Columbia, a U.S.
possession, or a registered securities or commodities
dealer.

Instructions for Forms 1099-INT and 1099-OID (2014)

Report interest on U.S. Savings Bonds on Form
1099-INT. Also report OID on obligations with a
term of 1 year or less on Form 1099-INT.

Box 1. Original Issue Discount for 2014

Report the OID on the obligation for the part of the year it
was owned by the record holder. Do not include the
amount reported in box 8. For a discussion of WHFITs,
WHMTs, REMICs, FASITs, and CDOs, see the
instructions later.

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Box 2. Other Periodic Interest

Box 9. Investment Expenses

Enter any stated interest (that is not OID) paid or credited
on this obligation during the year. However, you may
report any stated interest that is not OID on Treasury
Inflation-Indexed Securities in box 3 of Form 1099-INT
rather than in box 2 of Form 1099-OID. Interest reported
here must not be reported on Form 1099-INT. For a
discussion of REMICs, FASITs, and CDOs, see the
instructions, later.

For single-class REMICs only, see Box 9. Investment
Expenses under Rules for REMICs, FASITs, and Issuers
of CDOs, later.

Box 10. State

Enter the two letter postal abbreviation of the state for
which state income taxes are being withheld.

Box 11. State Identification No.

Box 3. Early Withdrawal Penalty

Enter the payer's state identification number.

Enter interest or principal forfeited because of an early
withdrawal, such as an early withdrawal from a CD, that is
deductible from gross income by the recipient. Do not
reduce the amounts in boxes 1 and 2 by the amount of the
forfeiture. For detailed instructions for determining the
amount of forfeiture deductible by the holder, see Rev.
Ruls. 75-20, 1975-1 C.B. 29, and 75-21, 1975-1 C.B. 367.

Box 12. State Tax Withheld

Enter the state income tax withheld on the payments
reported on this form.

Rules for Widely Held Fixed Investment Trusts
(WHFITs) and Widely Held Mortgage Trusts
(WHMTs)

Box 4. Federal Income Tax Withheld

If the OID attributable to a trust interest holder (TIH)
exceeds $10 for the calendar year, trustees and
middlemen must use Form 1099-OID to report both the
gross amount of OID (box 1) and interest (box 2) of the
WHFIT that is attributable to the TIH. If the trustee
provides WHFIT information using the safe harbor rules in
Regulations section 1.671-5(f)(1) or (g)(1), the trustee or
middleman must determine the amounts reported on
Form 1099-OID under Regulations section 1.671-5(f)(2)
or (g)(2), as appropriate.

Enter backup withholding. For example, if a recipient does
not furnish its TIN to you in the manner required, you must
backup withhold at a 28% rate. The 28% rate applies to
amounts required to be reported in boxes 1, 2, and 8 but
limited to the cash paid on these obligations. Before
applying the 28% rate, you may reduce the amounts
reported in boxes 1 and 2 by the amount reported in
box 3.
For information on requesting the recipient's TIN, see
part J in the 2014 General Instructions for Certain
Information Returns.

Reporting OID for a widely held mortgage trust
(WHMT). If a WHMT has a start-up date before August
13, 1998, trustees and middlemen of the WHMT are not
required to report OID information. If the WHMT has a
start-up date on or after August 13, 1998, and on or before
January 24, 2006, and the trustee has attempted in good
faith, but without success, to obtain the historical
information required to provide OID information, no
penalties will be imposed if the trustee and middlemen of
the WHMT do not provide OID information. The trustee
must provide a statement to middlemen indicating that the
trustee is not providing OID information because the
trustee has attempted, in good faith, to obtain the
information necessary to calculate OID but has been
unsuccessful. See Regulations section 1.671-5(m)(2).

Box 5. Foreign Tax Paid

Enter any foreign tax paid on OID. Report this amount in
U.S. dollars.

Box 6. Foreign Country or U.S. Possession

Enter the name of the foreign country or U.S. possession
for which the foreign tax was paid and reported in box 5.

Box 7. Description

Enter the CUSIP number, if any. If there is no CUSIP
number, enter the abbreviation for the stock exchange,
the abbreviation for the issuer used by the stock
exchange, the coupon rate, and the year of maturity (for
example, NYSE XYZ 121 2 25). If the issuer of the
obligation is other than the payer, show the name of the
issuer.

Requirement to furnish a tax information statement
to the TIH. A tax information statement that includes the
information provided to the IRS on Form 1099-OID, as
well as additional information identified in Regulations
section 1.671-5(e) must be provided to TIHs. The written
tax information statement must be furnished to the TIH by
March 15. The amount of an item of a trust expense that
is attributable to a TIH must be included on the tax
information statement provided to the TIH and is not
required to be included in box 9 on the Form 1099-OID.
For more filing requirements, see the 2014 General
Instructions for Certain Information Returns.

Box 8. Original Issue Discount on U.S. Treasury
Obligations

Enter the OID on a U.S. Treasury obligation for the part of
the year it was owned by the record holder. Do not include
this amount in box 1. You may enter any stated interest on
the Treasury obligation in box 2.
If you make payment on a U.S. Treasury obligation on
which OID is reportable, enter your name, address, and
federal identification number on Forms 1099-OID and
1096, not those of the U.S. Treasury Department or the
Bureau of Public Debt.

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Instructions for Forms 1099-INT and 1099-OID (2014)

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Rules for REMICs, FASITs, and Issuers of CDOs

interest or CDO holder identified on the form. The
statement must contain the information shown on Form
1099-OID, including the legend shown on Copy B of the
official Form 1099-OID, and an indication that these items
are being furnished to the IRS. The statement also must
show the information specified in Regulations section
1.6049-7(f)(2)(ii). In addition, the statement furnished by a
REMIC must show, for each calendar quarter, the
information specified in Regulations section 1.6049-7(f)
(3). Also see Regulations section 1.6049-7(f)(3)(ii) for
information that may be required to be reported to a real
estate investment trust (REIT) that holds a REMIC regular
interest.

These reporting rules apply only to FASITs in
existence on October 22, 2004, to the extent that
CAUTION
regular interests issued by the FASIT before that
date continue to remain outstanding in accordance with
the original terms of issue.

!

REMICs, holders of ownership interests in FASITs,
issuers of CDOs, and any broker or middleman who holds
as a nominee a REMIC or FASIT regular interest or CDO
must file Form 1099-OID. The form is used to report OID
of $10 or more accrued to a REMIC or FASIT regular
interest holder or to a holder of a CDO. Also use Form
1099-OID to report other interest accrued to a REMIC or
FASIT regular interest holder during the year or paid to a
holder of a CDO. You may use Form 1099-INT rather than
Form 1099-OID to report interest for an instrument issued
with OID if no OID is includible in the regular interest
holder's or CDO holder's income for the year.
You are not required to file or issue Form 1099-OID for
exempt recipients including but not limited to the
following.
A corporation.
A broker.
A middleman/nominee.
A financial institution.
Any IRA, Archer MSA, Medicare Advantage MSA, or
HSA.
A tax-exempt organization.
For additional exempt recipients, see Regulations
section 1.6049-7(c).

A single-class REMIC (as defined in Temporary
Regulations section 1.67-3T(a)(2)(ii)(B)) must include in
the statement the investment expenses paid or accrued
during each calendar quarter by the REMIC for which the
REMIC is allowed a deduction under section 212 and the
proportionate share of those investment expenses
allocated to the regular interest holder.
The statement must be furnished to holders by March
15. To meet the statement requirement, you may furnish a
copy of Form 1099-OID and a separate statement
containing the additional information to the REMIC or
FASIT regular interest or CDO holder.
For information about reporting income to REMIC
residual interest holders, see the instructions for
Schedule Q (Form 1066), Quarterly Notice to Residual
Interest Holder of REMIC Taxable Income or Net Loss
Allocation, in the separate Instructions for Form 1066,
available at www.irs.gov/form1066.

Box 1. Original Issue Discount for 2014
Report in box 1 the aggregate amount of OID includible in
the gross income of each REMIC or FASIT regular interest
or CDO holder for the period during the year for which the
return is made. No amount should be reported in box 8.

Form 8811 and Reporting by Brokers or
Middlemen
REMICs and issuers of CDOs also must file Form 8811,
Information Return for Real Estate Mortgage Investment
Conduits (REMICs) and Issuers of Collateralized Debt
Obligations, within 30 days after the startup date of the
REMIC or issue date of a CDO. The IRS will use the
information on Forms 8811 to update Pub. 938, Real
Estate Mortgage Investment Conduits (REMICs)
Reporting Information, for use by certain brokers,
middlemen, corporations, and others specified in
Regulations section 1.6049-7(e)(4). Pub. 938 is available
at www.irs.gov/pub938.

Box 2. Other Periodic Interest
Report in box 2 any amount of interest, other than OID,
accrued to each REMIC or FASIT regular interest holder
or paid to each CDO holder. If you are a single-class
REMIC (as defined in Temporary Regulations section
1.67-3T(a)(2)(ii)(B)), increase the amount otherwise
reportable in box 2 by the regular interest holder's share of
investment expenses of the REMIC for the year.

For the requirements that a REMIC or CDO issuer or a
broker or middleman who holds a REMIC or FASIT
regular interest or a CDO furnish certain information on
request, see Regulations sections 1.6049-7(e) and
1.6049-7(f)(7).

Box 9. Investment Expenses
Enter the regular interest holder's pro rata share of
investment expenses deductible by a single-class REMIC.
Statements to Holders
For each Form 1099-OID you are required to file, you
must furnish a statement to the REMIC or FASIT regular

Instructions for Forms 1099-INT and 1099-OID (2014)

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