Form 1099-OID (2016) 1099-OID (2016) Original Issue Discount

Attention:
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forms.

9696

VOID

CORRECTED

PAYER’S name, street address, city or town, state or province, country, ZIP
or foreign postal code, and telephone no.

1 Original issue discount for
2016

OMB No. 1545-0117

$

2016

2 Other periodic interest

1099-OID

$

Form

3 Early withdrawal penalty

4 Federal income tax withheld

$

$

5 Market discount

6 Acquisition premium

$

$

PAYER’S federal identification number RECIPIENT’S identification number

RECIPIENT’S name

Original Issue
Discount

Copy A
For
Internal Revenue
Service Center

7 Description

File with Form 1096.
Street address (including apt. no.)

City or town, state or province, country, and ZIP or foreign postal code

8 Original issue discount on
U.S. Treasury obligations

$
FATCA filing 9 Investment expenses
requirement

$

10 Bond premium

$

2nd TIN not. 11 State 12 State identification no. 13 State tax withheld

Account number (see instructions)

For Privacy Act
and Paperwork
Reduction Act
Notice, see the
2016 General
Instructions for
Certain
Information
Returns.

$
$
Form 1099-OID

Cat. No. 14421R

www.irs.gov/form1099oid

Department of the Treasury - Internal Revenue Service

Do Not Cut or Separate Forms on This Page — Do Not Cut or Separate Forms on This Page

VOID

CORRECTED

PAYER’S name, street address, city or town, state or province, country, ZIP
or foreign postal code, and telephone no.

1 Original issue discount for
2016

OMB No. 1545-0117

$

2016

2 Other periodic interest

1099-OID

$

Form

3 Early withdrawal penalty

4 Federal income tax withheld

$

$

5 Market discount

6 Acquisition premium

Copy 1

PAYER’S federal identification number RECIPIENT’S identification number

$

RECIPIENT’S name

Original Issue
Discount

For State Tax
Department

$

7 Description
Street address (including apt. no.)

City or town, state or province, country, and ZIP or foreign postal code

8 Original issue discount on
U.S. Treasury obligations

$
FATCA filing 9 Investment expenses
requirement

$
Account number (see instructions)

10 Bond premium

$

11 State 12 State identification no. 13 State tax withheld

$
$
Form 1099-OID

www.irs.gov/form1099oid

Department of the Treasury - Internal Revenue Service

CORRECTED (if checked)
PAYER’S name, street address, city or town, state or province, country, ZIP
or foreign postal code, and telephone no.

1 Original issue discount for
2016*

OMB No. 1545-0117

$

2016

2 Other periodic interest

1099-OID

$

Form

3 Early withdrawal penalty

4 Federal income tax withheld

$

$

5 Market discount

6 Acquisition premium

$

$

Copy B

PAYER’S federal identification number RECIPIENT’S identification number

RECIPIENT’S name

Original Issue
Discount

For Recipient

7 Description

This is important tax
information and is
being furnished to
the Internal Revenue
Service. If you are
required to file a
City or town, state or province, country, and ZIP or foreign postal code
8 Original issue discount on
* This may not be the correct
return, a negligence
figure to report on your income
U.S. Treasury obligations*
penalty or other
tax return. See instructions on
sanction may be
the back.
$
imposed on you if
FATCA filing 9 Investment expenses
10 Bond premium
this income is
taxable and the IRS
requirement
determines that it
has not been
$
$
reported.
Account number (see instructions)
11 State 12 State identification no. 13 State tax withheld
Street address (including apt. no.)

$
$
Form 1099-OID

(keep for your records)

www.irs.gov/form1099oid

Department of the Treasury - Internal Revenue Service

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
on a taxable obligation is taxable as interest over the life of the obligation. If you are
the holder of a taxable 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-protected securities. See Pub. 550 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, with the Internal Revenue Service Center for your area. On Form 1096, list
yourself as the “filer.” A spouse is not required to file a nominee return to show
amounts owned by the other spouse. 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.
The information provided may be different for covered and noncovered securities. For
a description of covered securities, see the Instructions for Form 8949. For a taxable
covered security acquired with acquisition premium, your payer may report either (1) a
net amount of OID that reflects the offset of OID by the amount of acquisition premium
amortization for the year or (2) a gross amount for both the OID and the acquisition
premium amortization for the year. For a noncovered security acquired with acquisition
premium, your payer is only required to report the gross amount of OID.
Recipient's identification number. For your protection, this form may show
only the last four digits of your social security number (SSN), individual taxpayer
identification number (ITIN), adoption taxpayer identification number (ATIN), or
employer identification number (EIN). However, the issuer has reported your
complete identification number to the IRS.
FATCA filing requirement. If the FATCA filing requirement box is checked, the payer
is reporting on this Form 1099 to satisfy its chapter 4 account reporting requirement.
You also may have a filing requirement. See the Instructions to Form 8938.

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
for details on how to figure the correct OID. See the instructions above for a covered
security acquired with acquisition premium.
Box 2. Shows qualified stated 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 8, 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 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 for information on backup
withholding. Include this amount on your income tax return as tax withheld.
Box 5. For a taxable covered security acquired with OID, if you made an election
under section 1278(b) to include market discount in income as it accrues and
you notified your payer of the election in writing in accordance with Regulations
section 1.6045-1(n)(5), shows the market discount that accrued on the debt
instrument during the year while held by you. For a taxable covered security,
market discount will be calculated on a constant yield basis unless you notified
your payer in writing in accordance with Regulations section 1.6045-1(n)(5) that
you did not want to make a constant yield election for market discount under
section 1276(b). Report the accrued market discount on your income tax return
as directed in the instructions for Form 1040 or 1040A.
(Continued on the back of Copy 2)

CORRECTED (if checked)
PAYER’S name, street address, city or town, state or province, country, ZIP
or foreign postal code, and telephone no.

1 Original issue discount for
2016

OMB No. 1545-0117

$

2016

2 Other periodic interest

1099-OID

$

Form

3 Early withdrawal penalty

4 Federal income tax withheld

$

$

5 Market discount

6 Acquisition premium

$

$

Copy 2

PAYER’S federal identification number RECIPIENT’S identification number

RECIPIENT’S name

Original Issue
Discount

7 Description

To be filed with
recipient's state
income tax
return, when
required.

Street address (including apt. no.)

City or town, state or province, country, and ZIP or foreign postal code

8 Original issue discount on
U.S. Treasury obligations

$
FATCA filing 9 Investment expenses
requirement

$
Account number (see instructions)

10 Bond premium

$

11 State 12 State identification no. 13 State tax withheld

$
$
Form 1099-OID

www.irs.gov/form1099oid

Department of the Treasury - Internal Revenue Service

Instructions for Recipient (Continued)
Box 6. For a taxable covered security, shows the amount of acquisition premium
amortization for the year that reduces the amount of OID that is included as
interest on your income tax return. If an amount is reported in this box, see the
instructions for Form 1040 (Schedule B). If an amount is not reported in this box
for a covered security acquired with acquisition premium, the payer has reported
a net amount of OID that reflects the offset of OID that is included in income. If
the payer has reported a net amount of OID in box 1 or box 8, you must report
the net amount of OID on Form 1040 (Schedule B) and you must not make an
adjustment to this amount for acquisition premium on Form 1040 (Schedule B).
Box 7. Shows the identification (CUSIP) number or description of the obligation
(may include the stock exchange, issuer, coupon rate, and year of maturity).
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
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. See the instructions above for a covered security acquired with
acquisition premium. If the number in this box is negative, it represents a
deflation adjustment. See Pub. 550 for further information on accounting for this
adjustment.

Box 9. Any amount shown is your share of investment expenses of a singleclass 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.
Box 10. For a taxable covered security, including a Treasury inflation-protected
security, shows the amount of premium amortization allocable to the interest
payment(s), unless you notified the payer in writing in accordance with
Regulations section 1.6045-1(n)(5) that you did not want to amortize bond
premium under section 171. If an amount is reported in this box, see the
Instructions for Form 1040 (Schedule B). If an amount is not reported in this box
for a taxable covered security acquired at a premium and the payer is reporting
premium amortization, the payer has reported a net amount of interest in box 2.
If the amount in this box is greater than the amount of interest paid on the
covered security, see Regulations section 1.171-2(a)(4).
Box 11—13. State income tax withheld reporting.
Future developments. For the latest information about developments related to
Form 1099-OID and its instructions, such as legislation enacted after they were
published, go to www.irs.gov/form1099oid.

VOID

CORRECTED

PAYER’S name, street address, city or town, state or province, country, ZIP
or foreign postal code, and telephone no.

1 Original issue discount for
2016

OMB No. 1545-0117

$

2016

2 Other periodic interest

1099-OID

$

Form

3 Early withdrawal penalty

4 Federal income tax withheld

$

$

5 Market discount

6 Acquisition premium

$

$

Copy C

PAYER’S federal identification number RECIPIENT’S identification number

RECIPIENT’S name

Original Issue
Discount

For Payer

7 Description
Street address (including apt. no.)

City or town, state or province, country, and ZIP or foreign postal code

8 Original issue discount on
U.S. Treasury obligations

$
FATCA filing 9 Investment expenses
requirement

$
Account number (see instructions)

10 Bond premium

$

For Privacy Act
and Paperwork
Reduction Act
Notice, see the
2016 General
Instructions for
Certain
Information
Returns.

2nd TIN not. 11 State 12 State identification no. 13 State tax withheld

$
$
Form 1099-OID

www.irs.gov/form1099oid

Department of the Treasury - Internal Revenue Service

Instructions for Payer
To complete Form 1099-OID, use:
• the 2016 General Instructions for Certain Information
Returns, and
• the 2016 Instructions for Forms 1099-INT and 1099-OID.
To order these instructions and additional forms, go to
www.irs.gov/form1099oid.
Caution: Because paper forms are scanned during
processing, you cannot file Forms 1096, 1097, 1098, 1099,
3921, 3922, or 5498 that you print from the IRS website.
Due dates. Furnish Copy B of this form to the recipient by
January 31, 2017.

File Copy A of this form with the IRS by February 28, 2017.
If you file electronically, the due date is March 31, 2017. To file
electronically, you must have software that generates a file
according to the specifications in Pub. 1220.
Foreign recipient. If the recipient is a nonresident alien, you
may have to withhold federal income tax and file Form 1042-S.
See the Instructions for Form 1042-S and Pub. 515.
Need help? If you have questions about reporting on Form
1099-OID, call the information reporting customer service site
toll free at 1-866-455-7438 or 304-263-8700 (not toll free).
Persons with a hearing or speech disability with access to
TTY/TDD equipment can call 304-579-4827 (not toll free).