VOID CORRECTED

PAYER’S name, street address, city, state, ZIP code, and telephone no. Original issue discount OMB No. 1545-0117

for 1998

1

Original Issue

2 Other periodic interest Discount

PAYER’S Federal identification number RECIPIENT’S identification number 3 Early withdrawal penalty 4 Federal income tax withheld

RECIPIENT’S name 5 Description

Street address (including apt. no.)

City, state, and ZIP code

Account number (optional) 2nd TIN Not.

Form 1099-OID Department of the Treasury - Internal Revenue Service

$

$

$ $

Copy A

For Paperwork

Reduction Act Notice

and instructions for

completing this

form, see the

1998 Instructions for

Forms 1099, 1098,

5498, and W-2G.

File with Form 1096.

Do NOT Cut or Separate Forms on This Page

9696

Cat. No. 14421R

For

Internal Revenue

Service Center

Form 1099-OID

98

CORRECTED (if checked)

PAYER’S name, street address, city, state, ZIP code, and telephone no. Original issue discount OMB No. 1545-0117

for 1998*

1

Original Issue

2 Other periodic interest Discount

PAYER’S Federal identification number RECIPIENT’S identification number 3 Early withdrawal penalty 4 Federal income tax withheld

RECIPIENT’S name 5 Description

Street address (including apt. no.)

City, state, and ZIP code

Account number (optional)

Form 1099-OID Department of the Treasury - Internal Revenue Service

$

$

$ $

Copy B

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.

(Keep for your records.)

* This may not be the correct figure to report on your

income tax return. See instructions on the back.

For Recipient

Form 1099-OID

98
Instructions for Recipient

Original issue discount (OID) is the excess of an obligation’s stated

redemption price at maturity over its issue price (acquisition price for a

stripped bond or coupon). OID is taxable as interest over the life of the

obligation. If you are the holder of an OID obligation, generally you must

include an amount of OID in your gross income each year you hold the

obligation. Box 2. Shows other interest on this obligation for the year, which is an

amount separate from the OID. If you held the obligation the entire year,

report this amount as interest income on your tax return. If you disposed

of the obligation or acquired it from another holder during the year, see

Pub. 550, Investment Income and Expenses, for reporting instructions. If

you are a regular interest holder in a single-class REMIC (as defined in

regulations under section 67(c)), this amount includes your share of the

investment expenses of the REMIC, deductible as a “Miscellaneous

Deduction” on Schedule A (Form 1040) subject to the 2% limit.

Obligations that may have OID include a bond, debenture, note,

certificate, or other evidence of indebtedness having a term of more than

1 year. For example, the OID rules may apply to certificates of deposit

(CDs), time deposits, bonus savings plans, and other deposit

arrangements, especially if the payment of interest is deferred until

maturity. In addition, the OID rules apply to Treasury inflation-indexed

securities. However, OID on Treasury obligations is exempt from state

and local income taxes.

If, as the record holder, you receive Form 1099-OID showing amounts

belonging to another person, you are considered a nominee recipient.

You must file Form 1099-OID for each of the other owners showing the

amounts allocable to each. Furnish a Form 1099-OID to each owner. File

Form(s) 1099-OID with Form 1096, Annual Summary and Transmittal of

U.S. Information Returns, with the Internal Revenue Service Center for

your area. On each Form 1099-OID, list yourself as the “payer” and the

other owner as the “recipient.” On Form 1096, list yourself as the “filer.”

A husband or wife is not required to file a nominee return to show

amounts owned by the other. If you bought or sold an obligation during

the year and you are not a nominee, you are not required to issue or file

Form 1099-OID showing the OID or stated interest allocable to the

seller/buyer of the obligation.

Box 3. Shows the interest or principal you forfeited if you withdrew the

money before the maturity date of the obligation, such as from a CD. You

may deduct this on your Federal income tax return only on the “Penalty

on early withdrawal of savings” line of Form 1040.

Box 4. Shows backup withholding. For example, persons not furnishing

their taxpayer identification number to the payer become subject to

backup withholding at a 31% rate on certain payments shown on the

form. See Form W-9, Request for Taxpayer Identification Number and

Certification, for information on backup withholding. Include this amount

on your income tax return as tax withheld.

Box 1. Shows the OID on the obligation for the part of the year you

owned it. Report the entire amount in box 1 as interest income on your

income tax return. However, if you paid acquisition or bond premium, or

if the obligation is a stripped bond or stripped coupon, you must

compute your proper amount of OID. If you must compute your proper

OID, see Pub. 1212, List of Original Issue Discount Instruments, to figure

the correct OID to report on your tax return.

Box 5. Shows the identification number (CUSIP number) or description of

the obligation. The description may include the stock exchange, issuer,

coupon rate, and year of maturity.
VOID CORRECTED

PAYER’S name, street address, city, state, ZIP code, and telephone no. Original issue discount OMB No. 1545-0117

for 1998

1

Original Issue

2 Other periodic interest Discount

PAYER’S Federal identification number RECIPIENT’S identification number 3 Early withdrawal penalty 4 Federal income tax withheld

RECIPIENT’S name 5 Description

Street address (including apt. no.)

City, state, and ZIP code

Account number (optional) 2nd TIN Not.

Form 1099-OID Department of the Treasury - Internal Revenue Service

$

$

$ $

Copy C

For Paperwork

Reduction Act

Notice and

instructions for

completing this

form, see the

1998 Instructions

for Forms 1099,

1098, 5498,

and W-2G.

For Payer

Form 1099-OID

98
Payers, Please Note—

Specific information needed to complete this form and

other forms in the 1099 series is given in the 1998

Instructions for Forms 1099, 1098, 5498, and W-2G.

A chart in those instructions gives a quick guide to

which form must be filed to report a particular

payment. You can order those instructions and

additional forms by calling 1-800-TAX-FORM

(1-800-829-3676).

Due dates. Furnish Copy B of this form to the

recipient by February 1, 1999.

File Copy A of this form with the IRS by March 1,

1999.

Foreign recipient. For information about withholding

on and reporting of income paid to a foreign person,

see Pub. 515, Withholding of Tax on Nonresident

Aliens and Foreign Corporations, and the Instructions

for Form 1042-S.