Form 1099-OID: Original Issue Discount

VOIDPaper only: marks a form on a sheet that should be ignored. It is not a correction; a filed return is undone with a corrected return.How corrections workCORRECTEDChecked on a return that replaces one already filed. Which fields to repeat, and whether two returns are needed, depends on the error.Type 1 vs Type 2 correctionsPayer's nameWhat goes hereYour name as the issuer, financial institution, broker or other middleman filing the return.Watch forIf you pay on a U.S. Treasury obligation with reportable OID, put your own name, address and TIN on Forms 1099-OID and 1096, not those of the Treasury Department or the Bureau of the Fiscal Service.Check the filer blockBox 1: Original issue discount for the yearWhat goes hereThe taxable OID on the obligation for the part of the year the record holder owned it. Use a separate form for each obligation the person holds.ThresholdTotal daily portions of OID of $10 or more for the holder.Watch forOID on a Treasury obligation goes in box 8, not here. OID on obligations of 1 year or less goes on Form 1099-INT. With acquisition premium, you may report net OID here or gross OID with the premium in box 6.Click to open the row in the box tableBox 2: Other periodic interestWhat goes hereQualified stated interest paid or credited on this obligation during the year.Watch forOptional here: you may report the stated interest on Form 1099-INT instead. If you report it here on a covered security, any bond premium on it goes in box 10, not on Form 1099-INT.Click to open the row in the box tableCalendar yearWhat goes hereThe calendar year the OID accrued to the holder. 2026 amounts go on a form marked 2026, filed with the IRS in early 2027.Watch forFor 2026 the IRS still uses the January 2024 revision of Form 1099-OID, a continuous-use form. Keep using it for later years until the IRS issues a replacement.The 2027 calendarPayer's TINThe EIN the returns are filed under; it must match the filer name on the first line. A sole proprietor may use an SSN, with the owner's name first.Check the filer blockRecipient's TINWhat goes hereThe holder's SSN, ITIN, ATIN or EIN.Watch forYou may truncate it on the recipient's statement, never on the copy filed with the IRS. The payer's TIN is never truncated. A missing TIN can trigger backup withholding in box 4.Match it before you fileBox 3: Early withdrawal penaltyWhat goes hereInterest or principal forfeited because of an early withdrawal of a time deposit, such as a CD, that the holder can deduct from gross income.Watch forDo not reduce boxes 1 and 2 by the forfeiture.Click to open the row in the box tableBox 4: Federal income tax withheldWhat goes hereBackup withholding, for example when the recipient did not give you a TIN in the manner required. It applies to amounts in boxes 1, 2 and 8, but only up to the cash paid on the obligation.ThresholdAny amount. File a Form 1099-OID for anyone you backup withheld from and did not refund, even if the OID is under $10.Watch forYou may first reduce boxes 1 and 2 by the box 3 penalty. The year's total is reported on Form 945.Click to open the row in the box tableBox 5: Market discountWhat goes hereFor a covered security bought with market discount and OID, when the recipient told you of a section 1278(b) election: the market discount that accrued during the year.Threshold$10 or more.Watch forUse the constant yield method unless the recipient told you otherwise. Reporting is optional for a tax-exempt covered security acquired before 2017.Click to open the row in the box tableBox 6: Acquisition premiumWhat goes hereFor a covered security bought with acquisition premium: the premium amortization for the part of the year the holder owned it.Watch forLeave it blank if you reported net OID in box 1, 8 or 11. Optional for a tax-exempt covered security acquired before January 1, 2017.Click to open the row in the box tableRecipient's nameThe name the IRS has for this TIN: an individual's own name for an SSN, the legal name for an EIN; a DBA goes on the second line. This is what TIN matching compares.Which name goes firstBox 7: DescriptionWhat goes hereThe CUSIP number, if any. Without one: the exchange abbreviation, the issuer's exchange abbreviation, the coupon rate and the year of maturity.Watch forIf the issuer is not the payer, show the issuer's name.Click to open the row in the box tableRecipient's street addressWhere the recipient copy is mailed. From the W-9 line 5; the IRS does not match it, but an undeliverable copy is a furnishing failure.Recipient's city or townCity of the mailing address, from the W-9 line 6.Box 8: OID on U.S. Treasury obligationsWhat goes hereOID on a U.S. Treasury obligation for the part of the year the record holder owned it. Stated interest on it may go in box 2.Watch forDo not include it in box 1. It can be negative, for example a deflation adjustment on a Treasury Inflation Protected Security.Click to open the row in the box tableBox 9: Investment expensesWhat goes hereFor single-class REMICs only: the regular interest holder's pro rata share of the REMIC's investment expenses. The same amount is added to box 2.Watch forMost payers leave it blank. A WHFIT puts a trust holder's share of trust expenses on its tax information statement instead.Click to open the row in the box tableFATCA filing requirementCheck it whenYou are a U.S. payer using this form (including amounts in boxes 1, 2 and 8) to meet your chapter 4 reporting on a U.S. account, or a foreign financial institution reporting a U.S. account under the election in Regulations section 1.1471-4(d)(5)(i)(A).Watch forChecking it makes the account number required.Box 10: Bond premiumWhat goes hereFor a taxable or tax-exempt covered security bought at a premium: the bond premium amortization allocable to the interest paid this year.Watch forFor a taxable bond, leave it out if the holder told you in writing they do not amortize under section 171. Leave it blank if you reported net interest in box 2.Click to open the row in the box tableBox 11: Tax-exempt OIDWhat goes hereOID on a tax-exempt obligation that is a covered security acquired on or after January 1, 2017, for the part of the year the record holder owned it.Watch forOptional for a tax-exempt covered security acquired before 2017. Stated interest on a specified private activity bond with OID goes in boxes 8 and 9 of Form 1099-INT.Click to open the row in the box tableAccount numberWhat goes hereYour own account number for this holder.Required whenYou have more than one account for the recipient and file more than one Form 1099-OID for them, or you check the FATCA filing requirement box. The IRS encourages one on every form.Box 2nd-tin: D TIN not.Check it whenThe IRS has notified you twice within 3 calendar years that this payee gave you an incorrect TIN. The IRS then sends you no further notices about this account.Watch forDo not check it if both notices came in the same year, or if they relate to returns for the same year. For the two-notices rule those count as one notice, so no second B Notice is due.Open this box on the IRIS field mapBox 12: StateWhat goes hereThe state's abbreviation. Up to two states, one per line.Watch forBoxes 12 to 14 are for your convenience and the IRS does not need them. They are for the Combined Federal/State Filing Program and states that want a paper copy (send Copy 1).Click to open the row in the box tableBox 13: State identification no.What goes hereThe payer's state identification number, the number that state assigned you.Watch forKeep each state's figures on its own line, separated by the dash line.Click to open the row in the box tableBox 14: State tax withheldWhat goes hereState income tax withheld from this payment, if any.Watch forGive the recipient Copy 2 for the state income tax return.Click to open the row in the box table

Hover over a box for what goes in it; click to open its row in the table below. On a touch screen, tap the box to jump to the row.

Who must file Form 1099-OID

File Form 1099-OID if the total daily portions of OID for a holder are $10 or more for the year on a debt instrument (including certificates of deposit with a term of more than one year, stripped bonds and coupons, and tax-exempt OID), or if you withheld and paid foreign tax on the OID, or backup withheld. The issuer, or a broker or other middleman holding the instrument for a customer, is the payer. Stated interest on the same instrument may be reported in box 2 rather than on a separate 1099-INT.

Exempt recipients match Form 1099-INT: corporations, tax-exempt organizations, IRAs, governments, dealers and the other categories in Regulations 1.6049-4(c).

Threshold: $10, $10 or more of OID includible in the holder's income for the year; any amount if backup withholding applied.

What is reported, box by box

Box titles follow the current revision of the form. The IRS reads the payer and recipient name, TIN, address, account number and the money boxes; the state boxes are for the state copy only.

Payments that are not reported on Form 1099-OID

• Instruments held by exempt recipients; short-term obligations (one year or less) held by the original holder, which are reported when redeemed.
• OID on obligations issued before 1985 in some cases, and de minimis OID under the section 1273 rule.
• OID paid to nonresident aliens reportable on Form 1042-S.

Due dates and extensions

An automatic 30-day extension is available on Form 8809, filed by the due date on paper or through IRIS; a second 30 days requires a hardship showing. Recipient statements can be extended 30 days on Form 15397, online or by fax only. 10 or more information returns of any type in aggregate must be e-filed (T.D. 9972); IRIS is the only IRS intake system from filing season 2027, FIRE having been retired. A payer who e-files the originals must e-file the corrections.

For 2026 forms filed in 2027: January 31 falls on a Sunday, so that deadline moves to Monday, February 1, 2027; February 28 also falls on a Sunday, so the paper deadline moves to Monday, March 1, 2027. March 31 (electronic) and March 15 are weekdays. February 28 does not become February 29 in a leap year. The compliance calendar has every date with the weekend shifts applied.

Backup withholding and TIN matching

OID is interest for section 3406, so the full interest rules apply: certified TIN required for post-1983 accounts, 60-day awaiting-TIN exemption, C-Notices, CP2100 notices. Withholding is on the cash paid, not the accrued OID. Payers of 1099-OID may use the IRS TIN Matching program.

Name and TIN errors on this form

Every information return is matched by the IRS on the first four characters of the payee's name (the name control) against the TIN. A mismatch produces a CP2100 line the following autumn and, unless the solicitation record is in order, a 972CG penalty the year after: $340 per return for 2026 forms filed in 2027 that are late or wrong, $690 for intentional disregard, with annual maximums of $4,191,500 ($1,397,000 for small filers) under Rev. Proc. 2025-32. The errors that recur on Form 1099-OID:

• The account-titling issues on Form 1099-INT apply verbatim: joint accounts, trusts, custodians and name changes.
• Brokerage sweep and CD programs often carry the customer record from the brokerage side; make sure the 1099-OID payer record is the same name/TIN pair the 1099-INT and 1099-B use, so one W-9 cures all three.

The name control calculator shows what the IRS will derive from a name line, and the CP2100 guide covers what to do when the notice arrives.

Recipient statements and substitutes

Form 1099-OID is subject to the statement mailing rules: the mailing may contain only the statement, a W-9 or W-8, a check or a letter explaining why there is none, the year-end account statement and a letter of tax consequences, with no advertising, and the envelope must carry the legend Important Tax Return Document Enclosed unless it contains only tax statements. A substitute Copy B must use the official box captions and numbers, show the OMB number and the tax year, form number and form name together in one place, bold the federal income tax withheld caption, and include a direct-access telephone number (Publication 1179, section 4.1). Statements may be furnished electronically only to a recipient who has affirmatively consented in a way that shows they can access the format, after the disclosures in Pub 1099 part M, and must stay posted through October 15. Copy B may show a truncated TIN (xxx-xx-1234); the IRS copy never may. The consent rules for furnishing statements electronically are under review: Notice 2026-4 asked for comments (due May 23, 2026) on whether the broker rules, and then the rules for every other payee statement, should change.

Corrections and state copies

A wrong amount, code or checkbox is a Type 1 correction: one corrected return with the CORRECTED box checked. The wrong form type is a Type 2 correction: a zeroed-out copy of the original plus a new original, in that order. A wrong or missing payee TIN or name is also Type 2 on paper, but IRIS corrects it in one step on the original record (Publication 5717). Publication 1099 also says you are not required to file a correction for a missing or incorrect TIN if you meet the reasonable-cause standard, only to use the right TIN on the next return, although the IRS encourages the correction. Details and the paper error charts are on the 1099 corrections page.

Form 1099-OID is a Combined Federal/State Filing program form: e-file it with the CF/SF election and the IRS forwards it to participating states. Whether that satisfies a given state, or the state wants a direct filing with its own transmittal, is on each state pages.

Questions people ask about Form 1099-OID

Other federal forms

1042-S · 1097-BTC · 1098 · 1098-C · 1098-E · 1098-F · 1098-Q · 1098-T · 1098-VLI · 1099-A · 1099-B · 1099-C · 1099-CAP · 1099-DIV · 1099-G · 1099-INT · 1099-K · 1099-LPS · 1099-LS · 1099-LTC · 1099-MISC · 1099-NEC · 1099-PATR · 1099-Q · 1099-QA · 1099-R · 1099-S · 1099-SA · 1099-SB · 3921 · 3922 · 5498 · 5498-ESA · 5498-QA · 5498-SA · 5498-TA · W-2G · 1099-DA · Comparison table

Sources: IRS Publication 1099 (2026), General Instructions for Certain Information Returns, which replaced the separate General Instructions starting with tax year 2026; Instructions for Forms 1099-INT and 1099-OID (Rev. January 2024); Pub 1099 (2026); IRC 6049IRC 6049Internal Revenue Code, Cornell LII, 1272 to 1278. Threshold amounts are indexed for inflation from calendar year 2027; check IRS.gov/InflationAdjustment for the current year.