Page 79 - Interest Income - Individuals Handbook

Original Issue Discount (OID)

Form 1099-OID

 The issuer of the debt instrument (or
your broker if you held the Form 1099-OID not
instrument through a broker) should received
give you Form 1099-OID, or a similar
statement, if the total OID for the  If you had OID for the year but
calendar year is $10 or more. didn't receive a Form 1099-OID,
 Form 1099-OID will show, in box 1, you may have to figure the correct
the amount of OID for the part of the amount of OID to report on your
year that you held the bond. return. See Pub. 1212 for details
 It will also show, in box 2, the stated on how to figure the correct OID.
interest you must include in your
income.
 Box 8 shows OID on a U.S. Treasury
obligation for the part of the year you
owned it and isn't included in box 1.
 A copy of Form 1099-OID will be sent
to the IRS. Don't file your copy with
your return.
 Keep it for your records. In most
cases, you must report the entire
amount in boxes 1, 2, and 8 of Form
1099-OID as interest income.
 But see Refiguring OID shown on
Form 1099-OID, later in this
discussion, for more information. 77