Form 1099-OID - Original Issue Discount

2016

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.

What's New
Reporting bond premium. Box 12 was added to Form
1099-INT and Box 10 was added to Form 1099-OID to
report bond premium.

Reminders
General Instructions. In addition to these specific
instructions, you should also use the 2016 General
Instructions for Certain Information Returns. Those
general instructions include information about the
following topics.
Who must file (nominee/middleman; certain FFIs and
U.S. payers that report on Form(s) 1099 to satisfy their
chapter 4 reporting requirements).
When and where to file.
Electronic reporting requirements.
Corrected and void returns.
Statements to recipients.
Taxpayer identification numbers.
Backup withholding.
Penalties.
The definitions of terms applicable for chapter 4
purposes that are referenced in these instructions.
Other general topics.
You can get the general instructions at
www.irs.gov/form1099int or www.irs.gov/form1099oid.
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 Regulations sections
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.

Specific Instructions for Form
1099-INT

File Form 1099-INT, Interest Income, for each person:

Aug 28, 2015

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 that is not original issue discount
(OID) on Form 1099-INT. You do not need to report
tax-exempt interest that is 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
regulated investment company (RIC) on Form 1099-DIV.
Exceptions to reporting. No Form 1099-INT must be
filed for payments made to exempt recipients or for
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 individual retirement arrangement (IRA), Archer
medical savings account (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

Cat. No. 27980N

number (SSN), individual taxpayer identification number
(ITIN), adoption taxpayer identification number (ATIN), or
employer identification number (EIN)) on payee
statements. Truncation is not allowed on any documents
the filer files with the IRS. A payer's identification number
may not be truncated on any form. See part J in the 2016
General Instructions for Certain Information Returns.

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.

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. The account number
is also required if you check the “FATCA filing
requirement” box. See FATCA filing requirement check
box, later. Additionally, the IRS encourages you to
designate an account number for all Forms 1099-INT that
you file. See part L in the 2016 General Instructions for
Certain Information Returns.

Reporting interest and OID. If you are reporting
qualified stated interest and OID on any taxable
obligation, you may report both the qualified stated
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 qualified stated interest in
box 2 and the OID in box 1 or 8. However, you may
choose to report the qualified stated interest on Form
1099-INT and the OID on Form 1099-OID.

FATCA filing requirement check box. Check the box if
you are a U.S. payer that is reporting on Form(s) 1099
(including reporting payments in boxes 1, 3, 8, 9, and 10
on this Form 1099-INT) as part of satisfying your
requirement to report with respect to a U.S. account for
chapter 4 purposes as described in Regulations section
1.1471-4(d)(2)(iii)(A). In addition, check the box if you are
an FFI reporting payments to a U.S. account pursuant to
an election described in Regulations section 1.1471-4(d)
(5)(i)(A).

Reporting interest and bond premium. For a covered
security acquired with bond premium, you must report the
amount of bond premium amortization for the tax year.
See Regulations section 1.6045-1(a)(15)(i)(C) to
determine if a debt instrument is a covered security.
However, in the case of a taxable bond, if you have been
notified by the taxpayer that the taxpayer does not elect to
amortize bond premium, you must not report any amount
of bond premium amortization. See Regulations section
1.6045-1(n)(5).
If you are required to report the amount of bond
premium amortization allocable to an interest payment,
you may report either (1) a net amount of interest that
reflects the offset of the interest payment by the amount of
bond premium amortization allocable to the interest
payment, or (2) a gross amount for both the interest
payment and the bond premium amortization allocable to
the interest payment. For example, if a taxpayer receives
$20 of taxable interest from a corporate bond and the
amount of bond premium amortization allocable to the
interest is $2, you may report $18 of interest income in
box 1 and $0 in box 11, or you may report $20 of interest
income in box 1 and $2 in box 11. For a noncovered
security acquired with bond premium, you are only
required to report the gross amount of interest.

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 and you are not required to send a
second “B” notice to the taxpayer on receipt of the second
notice. See part N in the 2016 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 2016 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).

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 2016 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.

Box 1. Interest Income

Enter interest not included in box 3. Include amounts of
$10 or more, whether or not designated as interest, that
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

Truncating recipient’s identification number on
payee statements. Pursuant to Treasury Regulations
section 301.6109-4, all filers of Form 1099-INT may
truncate a recipient’s identification number (social security
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Instructions for Forms 1099-INT and 1099-OID (2016)

Box 2. Early Withdrawal Penalty

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 TIH of a
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.

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.

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 certain notional principal contracts with
nonperiodic payments. See Regulations section
1.446-3T(g)(4).

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.
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.

Include in box 1 any accrued qualified stated 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.
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.

Box 4. Federal Income Tax Withheld

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.

Interest to holders of tax credit bonds. Report tax
credits in amounts of $10 or more allowed from the
following tax credit bonds.
Clean renewable energy bonds.
New clean renewable energy bonds.
Qualified energy conservation bonds.
Qualified zone academy bonds.
Qualified school construction bonds.
Build America bonds (Tax Credit).
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 (REIT) as defined in
section 856.
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).
Any trust which is exempt from tax under section
664(c).

Instructions for Forms 1099-INT and 1099-OID (2016)

For information on requesting the recipient's TIN, see
part J in the 2016 General Instructions for Certain
Information Returns.

Box 5. Investment Expenses

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

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.

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 their political subdivisions, or qualified
volunteer fire departments. A political subdivision may
include port authorities, toll road commissions, utility
services authorities, and community redevelopment
agencies. Include in box 8 any accrued qualified stated
interest on these bonds sold between interest dates (or on
a payment date).

Any exempt-interest dividends from a mutual fund or
other RIC are reported on Form 1099-DIV.

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Box 13. Bond Premium on Tax-Exempt Bond

No information reporting for tax-exempt OID under
section 6049 will be required until such time as the IRS
and Treasury provide future guidance.

For a tax-exempt covered security acquired at a premium,
enter the amount of bond premium amortization allocable
to the interest paid during the tax year. If you reported a
net amount of interest in box 8 or 9, whichever is
applicable, leave this box blank.

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

Box 14. Tax-Exempt and Tax Credit Bond CUSIP
No.

Box 9. Specified Private Activity Bond Interest

Enter interest of $10 or more 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.

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 or tax credit bond
(including build America bond and specified tax credit
bond) for which a tax credit or taxable interest, as
applicable, is reported in box 1. Enter the CUSIP number
of the bond for which interest was paid or tax credit was
allowed. If the tax-exempt interest or the tax credit is
reported in the aggregate for multiple bonds or accounts,
enter “various.”

Box 10. Market Discount

For a taxable or tax-exempt covered security acquired
with market discount, if the taxpayer notified you that a
section 1278(b) election was made, enter the amount of
market discount that accrued on the debt instrument
during the tax year in the amount of $10 or more. For more
details, see Regulations section 1.6045-1(n). Also see TD
9616, available at www.irs.gov/irb/2013-20_IRB/
ar07.html. Unless the taxpayer notified you that the
taxpayer did not make a section 1276(b) election, use the
constant yield method described in section 1276(b)(2) to
determine the accruals of market discount for the debt
instrument. See Regulations section 1.6045-1T(n)(11)(i)
(B). For a taxable covered security with original issue
discount, report the accruals of market discount on Form
1099-OID rather than on Form 1099-INT. For a
tax-exempt covered security with original issue discount
and no qualified stated interest (for example, a zero
coupon debt instrument), you are not required to report
the accruals of market discount in this box or on Form
1099-OID.

Boxes 15–17. State Information

These boxes may be used by payers who participate in
the Combined Federal/State Filing Program and/or who
are required to file paper copies of this form with a state
tax department. See Publication 1220 for more
information regarding the Combined Federal/State Filing
Program. They are provided for your convenience only
and need not be completed for the IRS. Use the state
information boxes to report payments for up to two states.
Keep the information for each state separated by the dash
line. If you withheld state income tax on this payment, you
may enter it in box 17. In box 15, enter the abbreviated
name of the state, and in box 16, enter the payer's state
identification number. The state number is the payer's
identification number assigned by the individual state.
If a state tax department requires that you send them a
paper copy of this form, use Copy 1 to provide information
to the state tax department. Give Copy 2 to the recipient
for use in filing the recipient's state income tax return.

Box 11. Bond Premium

For a taxable covered security acquired at a premium,
enter the amount of bond premium amortization allocable
to the interest paid during the tax year, unless you were
notified in writing that the holder did not want to amortize
bond premium under section 171. See Regulations
sections 1.6045-1(n)(5) and 1.6049-9(b). If you are
required to report bond premium amortization and you
reported a net amount of interest in box 1, leave this box
blank.

Rules for Widely Held Fixed Investment Trusts
(WHFITs)

Trustees and middlemen must report the gross amount of
interest attributable to the 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 12. Bond Premium on U.S. Treasury
Obligations

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.

For a U.S. Treasury obligation that is a covered security,
enter the amount of bond premium amortization allocable
to the interest paid during the tax year, unless you were
notified in writing that the holder did not want to amortize
bond premium under section 171. See Regulations
sections 1.6045-1(n)(5) and 1.6049-9(b). If you are
required to report bond premium amortization and you
reported a net amount of interest in box 3, leave this box
blank.

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Instructions for Forms 1099-INT and 1099-OID (2016)

WHFIT interest income information may be included in
summary totals reported to the IRS and the TIH.
Information about WHFIT interest income may also be
included in a composite statement furnished to the TIH.
For more filing requirements, see the 2016 General
Instructions for Certain Information Returns.

1.6049-7(f)(2)(i). 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 REIT
that holds a REMIC regular interest.

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

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
Instructions for Forms 1099-INT and 1099-OID (2016)

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corporation, a tax-exempt organization, any individual
retirement arrangement (IRA), an Archer medical savings
account (MSA), Medicare Advantage MSA, health
savings account (HSA), a U.S. agency, a state, the District
of Columbia, a U.S. possession, or a registered securities
or commodities dealer.

plans, if the arrangements have OID and a term of more
than 1 year;
A broker or other middleman holding an OID obligation,
including CDs, as nominee for the actual owner;
A trustee or middleman of a widely held fixed
investment trust (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

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.

Reporting interest and OID. If you are reporting
qualified stated interest and OID on a taxable obligation,
you may report both the 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 qualified
stated 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. For a tax-exempt obligation, you
must report tax-exempt interest on Form 1099-INT and
you cannot report tax-exempt OID on either form. See
Form 1099-INT 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.
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.

Reporting OID and acquisition premium. For a
taxable covered security acquired with acquisition
premium, you must report the amount of acquisition
premium amortization for the tax year. See Regulations
section 1.6045-1(a)(15)(i)(C) to determine if a debt
instrument is a covered security. In general, you must use
the rules in Regulations section 1.1272-2(b)(4) to amortize
the acquisition premium. See Regulations section
1.6049-9(c).
If you are required to report the amount of acquisition
premium amortized for the tax year, you 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
example, if $20 of OID accrues on a corporate bond
during the year and there is acquisition premium
amortization of $2 for the year, you may report $18 of OID
in box 1 and $0 in box 6, or you may report $20 of OID in
box 1 and $2 in box 6. For a noncovered security acquired
with acquisition premium, you are only required to report
the gross amount of OID.

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, later.
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, you can file a single Form 1099-OID only if: (1)
they are the same issue, (2) held the same amount of time
during the calendar year, (3) acquired at the same time,
(4) acquired for the same price, and (5) all debt elections
(or lack of elections) are the same for all certificates.
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 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,
generally within 30 days after the date of issuance, or, if
later, the date of registration with the Securities and
Exchange Commission. The information provided on that
form will enable the IRS to update Pub. 1212. See Form
8281, available at www.irs.gov/form8281, and TD 9616,
available at www.irs.gov/irb/2013-20_IRB/ar07.html, for
details.

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 2016 General Instructions
for Certain Information Returns.
Truncating recipient’s identification number on
payee statements. Pursuant to Treasury Regulations
section 301.6109-4, all filers of Form 1099-OID may
truncate a recipient’s identification number (social security
number (SSN), individual taxpayer identification number
(ITIN), adoption taxpayer identification number (ATIN), or
employer identification number (EIN)) on payee
statements. Truncation is not allowed on any documents
the filer files with the IRS. A payer's identification number
may not be truncated on any form. See part J in the 2016
General Instructions for Certain Information Returns.

Exceptions. You are not required to file Form 1099-OID
for payments made to certain payees including a
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Instructions for Forms 1099-INT and 1099-OID (2016)

holder, see Rev. Ruls. 75-20, 1975-1 C.B. 29, and 75-21,
1975-1 C.B. 367.

FATCA filing requirement check box. Check the box if
you are a U.S. payer that is reporting on Form(s) 1099
(including reporting amounts in boxes 1, 2, and 8 on this
Form 1099-OID) as part of satisfying your requirement to
report with respect to a U.S. account for chapter 4
purposes as described in Regulations section 1.1471-4(d)
(2)(iii)(A). In addition, check the box if you are an FFI
reporting payments to a U.S. account pursuant to an
election described in Regulations section 1.1471-4(d)(5)
(i)(A).

Box 4. Federal Income Tax Withheld

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
is 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.

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. The account number
is also required if you check the “FATCA filing
requirement” box. See FATCA filing requirement check
box, earlier. Additionally, the IRS encourages you to
designate an account number for all Forms 1099-OID that
you file. See part L in the 2016 General Instructions for
Certain Information Returns.

For information on requesting the recipient's TIN, see
part J in the 2016 General Instructions for Certain
Information Returns.

Box 5. Market Discount

For a taxable covered security acquired with market
discount and OID, if the taxpayer notified you that a
section 1278(b) election was made, enter the amount of
market discount that accrued on the debt instrument
during the tax year in the amount of $10 or more. For more
details, see Regulations section 1.6045-1(n). Also see TD
9616. Unless the taxpayer notified you that the taxpayer
did not make a section 1276(b) election, use the constant
yield method described in section 1276(b)(2) to determine
the accruals of market discount for the debt instrument.
See Regulations section 1.6045-1T(n)(11)(i)(B).

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 and you are not required to send a
second “B” notice to the taxpayer on receipt of the second
notice. See part N in the 2016 General Instructions for
Certain Information Returns for more information.

Box 6. Acquisition Premium

For a taxable covered security acquired with acquisition
premium, enter the amount of premium amortization for
the part of the year the debt instrument was owned by the
holder. See Regulations sections 1.6045-1(n)(5) and
1.6049-9(c). If you reported a net amount of OID in box 1
or 8, as applicable, leave this box blank.

For information on the TIN Matching System
offered by the IRS, see Items You Should Note in
the 2016 General Instructions for Certain
Information Returns.

TIP

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.

Box 1. Original Issue Discount for 2016

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.

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

Box 2. Other Periodic Interest

Enter any qualified stated interest paid or credited on this
obligation during the year. However, you may report any
qualified stated interest on Treasury Inflation Protected
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.

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 qualified stated
interest on the Treasury obligation in box 2. The amount in
box 8 may be a negative number (for example, if a
Treasury Inflation Protected Security has a deflation
adjustment for the year).

Box 3. Early Withdrawal Penalty

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.

Enter interest or principal forfeited because of an early
withdrawal of time deposits, 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

Instructions for Forms 1099-INT and 1099-OID (2016)

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Box 9. Investment Expenses

information necessary to calculate OID but has been
unsuccessful. See Regulations section 1.671-5(m)(2).

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

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 2016 General
Instructions for Certain Information Returns.

Box 10. Bond Premium

For a taxable covered security acquired at a premium,
enter the amount of bond premium amortization allocable
to the interest paid during the tax year, unless you were
notified in writing that the holder did not want to amortize
bond premium under section 171. See Regulations
sections 1.6045-1(n)(5) and 1.6049-9(b). If you are
required to report bond premium amortization and you
reported a net amount of interest in box 2, leave this box
blank.

Rules for REMICs, FASITs, and Issuers of CDOs

Boxes 11–13. State Information

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.

These boxes may be used by payers who participate in
the Combined Federal/State Filing Program and/or who
are required to file paper copies of this form with a state
tax department. See Publication 1220 for more
information regarding the Combined Federal/State Filing
Program. They are provided for your convenience only
and need not be completed for the IRS. Use the state
information boxes to report payments for up to two states.
Keep the information for each state separated by the dash
line. If you withheld state income tax on this payment,
enter it in box 12. In box 10, enter the abbreviated name of
the state, and in box 11, enter the payer's state
identification number. The state number is the payer's
identification number assigned by the individual state.

!

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.

If a state tax department requires that you send them a
paper copy of this form, use Copy 1 to provide information
to the state tax department. Give Copy 2 to the recipient
for use in filing the recipient's state income tax return.

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.

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

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.

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

Box 1. Original Issue Discount for 2016
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.

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

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.
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Instructions for Forms 1099-INT and 1099-OID (2016)

copy of Form 1099-OID and a separate statement
containing the additional information to the REMIC or
FASIT regular interest or CDO holder.

Box 9. Investment Expenses
Enter the regular interest holder's pro rata share of
investment expenses deductible by a single-class REMIC.

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.

Statements to Holders
For each Form 1099-OID you are required to file, you
must furnish a statement to the REMIC or FASIT regular
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.

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 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.

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.

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).

The statement must be furnished to holders by March
15. To meet the statement requirement, you may furnish a

Instructions for Forms 1099-INT and 1099-OID (2016)

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