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Instructions for Recipient
Original issue discount (OID) is the excess of an obligation’s stated redemption Box 1. Shows the OID on a taxable obligation for the part of the year you owned it.
price at maturity over its issue price (acquisition price for a stripped bond or Reportthe amount in box 1 as interest income on your income tax return. However,
coupon). OID on a taxable obligation is taxable as interest over the life of the depending on the type of debt instrument, the issue or acquisition date, and other
obligation. If you are the holder of a taxable OID obligation, you generally must factors (for example, if you paid acquisition or bond premium, or the obligation is a
include an amount of OID in your gross income each year you hold the stripped bond or coupon), you may have to figure the correct amount of OID to
obligation. Obligations that may have OID include a bond, debenture, note, report on your return. See Pub. 1212 for details on how to figure the correct OID.
certificate, or other evidence of indebtedness having a term of more than 1 year. See the instructions above for a covered security acquired with acquisition premium.
For example, the OID rules may apply to certificates of deposit (CDs), time Box 2. Shows qualified stated interest on this obligation for the year, which is an
deposits, bonus savings plans, and other deposit arrangements, especially if the amountseparate from the OID. If you held the obligation the entire year, report
payment of interest is deferred until maturity. In addition, the OID rules apply to this amountas interest income on your tax return. If you disposed of the
Treasury inflation-protected securities. See Pub. 550 for more information. obligation or acquired itfrom another holder during the year, see Pub. 550 for
If, as the record holder, you receive Form 1099-OID showing amounts reporting instructions. If thereis an amount in both boxes 2 and 8, the amount in
belonging to another person, you are considered a nominee recipient. Complete box 2 is interest on a U.S.Treasury obligation and is exempt from state and
a Form 1099-OID for each of the other owners showing the amounts allocable to local income taxes. If there is an amount in both boxes 2 and 11, the amount in
each. File Copy A of the form with the IRS. Furnish Copy B to each owner. List box 2 is tax-exempt interest and is not included in interest income on your tax
yourself as the “payer” and the other owner as the “recipient.” File Form(s) return. In general, see how to report tax-exempt interest in the Instructions for
1099-OID with Form 1096 with the Internal Revenue Service Center for your Forms 1040 and 1040-SR.
area. On Form 1096, list yourself as the “filer.” A spouse is not required to file a Box 3. Shows interest or principal forfeited if you withdrew the money before
nominee return to show amounts owned by the other spouse. If you bought or thematurity date of the obligation, such as from a CD. You may deduct this
sold an obligation during the year and you are not a nominee, you are not amount tofigure your adjusted gross income on your income tax return. See the
required to issue or file Form 1099-OID showing the OID or stated interest Instructions forForms 1040 and 1040-SR to see where to take the deduction.
allocable to the seller/buyer of the obligation. Box 4. Shows backup withholding. Generally, a payer must backup withhold if
The information provided may be different for covered and noncovered youdid not furnish your TIN or you did not furnish thecorrect TIN to the payer.
securities. For a description of covered securities, see the Instructions for Form See Form W-9 for information on backup withholding. Include this amount on
8949. For a covered security acquired with acquisition premium, your payer yourincome tax return as tax withheld.
generally must report either (1) a net amount of OID that reflects the offset of Box 5. For a covered security acquired with OID, if you made an election under
OID by the amount of acquisition premium amortization for the year, or (2) a section 1278(b) to include market discount in income as it accrues and you
gross amount for both the OID and the acquisition premium amortization for the notified your payer of the election in writing in accordance with Regulations
year. For a noncovered security acquired with acquisition premium, your payer section 1.6045-1(n)(5), shows the market discount that accrued on the debt
is only required to report the gross amount of OID. instrument during the year while held by you. For a tax-exempt obligation that is
Recipient’s taxpayer identification number (TIN). For your protection, this a covered security acquired on or after January 1, 2017, and issued with OID,
form may show only the last four digits of your TIN (social security number shows the market discount that accrued on the obligation during the year while
(SSN), individual taxpayer identification number (ITIN), adoption taxpayer held by you. For a covered security acquired on or after January 1, 2015, market
identification number (ATIN), or employer identification number (EIN)). However, discount will be calculated on a constant yield basis unless you notified your
the issuer has reported your complete TIN to the IRS. payer in writing in accordance with Regulations section 1.6045-1(n)(5) that you
FATCA filing requirement. If the FATCA filing requirement box is checked, the did not want to make a constant yield election for market discount under section
payer is reporting on this Form 1099 to satisfy its chapter 4 account reporting 1276(b). The payer may, but is not required to, report the market discount for a
requirement. You may also have a filing requirement. See the Instructions for tax-exempt obligation that is a covered security acquired before January 1,
Form 8938. 2017. Report the accrued market discount on your income tax return as directed
Account number. May show an account or other unique number the payer in the Instructions for Forms 1040 and 1040-SR. Market discount on a tax-
assignedto distinguish your account. exempt security is includible in taxable income as interest income.
(Continued on the back of Copy 2)
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