Form 1099-OID

2016

Cat. No. 14421R

Original Issue 

Discount

For 

Internal Revenue 

Service Center

Department of the Treasury - Internal Revenue Service

File with Form 1096.

OMB No. 1545-0117

For Privacy Act 

and Paperwork 

Reduction Act 

Notice, see the 

2016 General 

Instructions for 

Certain 

Information

Returns.

9696 VOID CORRECTED

PAYER’S name, street address, city or town, state or province, country, ZIP 

or foreign postal code, and telephone no. 

PAYER’S federal identification number RECIPIENT’S identification number

RECIPIENT’S name

Street address (including apt. no.)

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

FATCA filing 

requirement

Account number (see instructions) 2nd TIN not.

1 Original issue discount for 

2016

$

2 Other periodic interest

$

3 Early withdrawal penalty

$

4 Federal income tax withheld

$

5 Market discount

$

6 Acquisition premium

$

7 Description

8 Original issue discount on

U.S. Treasury obligations

$

9 Investment expenses

$

10 Bond premium

$

11 State 12 State identification no. 13 State tax withheld

$

$

Copy A

Form 1099-OID www.irs.gov/form1099oid

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

Form 1099-OID

2016 Original Issue 

Discount

Copy 1

For State Tax 

Department

Department of the Treasury - Internal Revenue Service

OMB No. 1545-0117

VOID CORRECTED

PAYER’S name, street address, city or town, state or province, country, ZIP 

or foreign postal code, and telephone no.

PAYER’S federal identification number RECIPIENT’S identification number

RECIPIENT’S name

Street address (including apt. no.)

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

FATCA filing 

requirement

Account number (see instructions)

1 Original issue discount for 

2016

$

2 Other periodic interest

$

3 Early withdrawal penalty

$

4 Federal income tax withheld

$

5 Market discount

$

6 Acquisition premium

$

7 Description

8 Original issue discount on 

U.S. Treasury obligations

$

9 Investment expenses

$

10 Bond premium

$

11 State 12 State identification no. 13 State tax withheld

$

$

Form 1099-OID www.irs.gov/form1099oid
 

Form 1099-OID

2016 Original Issue 

Discount

Copy B

For Recipient

Department of the Treasury - Internal Revenue Service

This is important tax 

information and is 

being furnished to 

the Internal Revenue 

Service. If you are 

required to file a 

return, a negligence 

penalty or other 

sanction may be 

imposed on you if 

this income is 

taxable and the IRS 

determines that it 

has not been 

reported.

OMB No. 1545-0117

CORRECTED (if checked)

PAYER’S name, street address, city or town, state or province, country, ZIP 

or foreign postal code, and telephone no.

PAYER’S federal identification number RECIPIENT’S identification number

RECIPIENT’S name

Street address (including apt. no.)

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

FATCA filing 

requirement

Account number (see instructions)

1 Original issue discount for 

2016*

$

2 Other periodic interest

$

3 Early withdrawal penalty

$

4 Federal income tax withheld

$

5 Market discount

$

6 Acquisition premium

$

7 Description

8 Original issue discount on 

U.S. Treasury obligations*

$

* This may not be the correct 

figure to report on your income 

tax return. See instructions on 

the back.

9 Investment expenses

$

10 Bond premium

$

11 State 12 State identification no. 13 State tax withheld

$

$

Form 1099-OID (keep for your records) www.irs.gov/form1099oid
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)
 

Form 1099-OID

2016 Original Issue 

Discount

Copy 2

To be filed with 

recipient's state 

income tax 

return, when 

required.

Department of the Treasury - Internal Revenue Service

OMB No. 1545-0117

CORRECTED (if checked)

PAYER’S name, street address, city or town, state or province, country, ZIP 

or foreign postal code, and telephone no.

PAYER’S federal identification number RECIPIENT’S identification number

RECIPIENT’S name

Street address (including apt. no.)

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

FATCA filing 

requirement

Account number (see instructions)

1 Original issue discount for 

2016

$

2 Other periodic interest

$

3 Early withdrawal penalty

$

4 Federal income tax withheld

$

5 Market discount

$

6 Acquisition premium

$

7 Description

8 Original issue discount on 

U.S. Treasury obligations

$

9 Investment expenses

$

10 Bond premium

$

11 State 12 State identification no. 13 State tax withheld

$

$

Form 1099-OID www.irs.gov/form1099oid
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.
 

Form 1099-OID

2016 Original Issue 

Discount

Copy C

For Payer

Department of the Treasury - Internal Revenue Service

OMB No. 1545-0117

For Privacy Act 

and Paperwork 

Reduction Act 

Notice, see the 

2016 General

Instructions for

Certain 

Information

Returns.

VOID CORRECTED

PAYER’S name, street address, city or town, state or province, country, ZIP 

or foreign postal code, and telephone no.

PAYER’S federal identification number RECIPIENT’S identification number

RECIPIENT’S name

Street address (including apt. no.)

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

FATCA filing 

requirement

Account number (see instructions) 2nd TIN not.

1 Original issue discount for 

2016

$

2 Other periodic interest

$

3 Early withdrawal penalty

$

4 Federal income tax withheld

$

5 Market discount

$

6 Acquisition premium

$

7 Description

8 Original issue discount on 

U.S. Treasury obligations

$

9 Investment expenses

$

10 Bond premium

$

11 State 12 State identification no. 13 State tax withheld

$

$

Form 1099-OID www.irs.gov/form1099oid
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).