Form 1099-OID is used to report the amount of original issue discount (OID) income that a taxpayer has received during the year. OID is the difference between the stated redemption price at maturity and the issue price of a bond, and it is considered taxable income.
Here are some points about who should complete Form 1099-OID:
1. Bondholders: If you own a bond or other debt instrument that was issued at a discount, you may receive OID income, and therefore, you may need to complete Form 1099-OID.
2. Issuers of debt instruments: If you are a corporation, government entity, or other organization that issues debt instruments with OID, you are responsible for providing Form 1099-OID to the bondholders.
3. Mortgage holders: If you hold a mortgage note that provides for payment of OID, you may be required to report OID income and complete Form 1099-OID.
4. Debt investors: If you are an individual or entity that invests in discounted debt securities (such as zero-coupon bonds) and you have received OID income, you need to report it using Form 1099-OID.
5. Financial institutions: If you are a financial institution (such as a bank or credit union) that pays OID on deposit accounts or other debt instruments, you may have to issue Form 1099-OID to the recipients of the income.
It is important to note that not all debt instruments generate OID income, and some individuals may not need to complete Form 1099-OID. It is recommended to consult with a tax professional or review the IRS instructions for Form 1099-OID to determine if you are required to complete this form.