How do I create Form 1099-OID?

Completing Form 1099-OID

  1. Click on the Payer List button.
  2. Double click on the payer name.
  3. Highlight the recipient to add the form to.
  4. Click on the Add Form button.
  5. Choose 1099-OID from the Form Type drop down menu.
  6. Fill in the necessary fields on the form:
    • Corrected:  Check if this box applies.
    • Original issue discount:  Report the OID on the obligation for the part of the year it was owned by the record holder.
    • Other periodic interest:  Enter any stated interest paid or credited on this obligation during the year.
    • Early withdrawal penalty:  Enter interest or principal forfeited because of an early withdrawal.
    • Federal income tax withheld:  Enter backup withholding.
    • Market discount:  For a covered security acquired with market discount, if the taxpayer notified you that a section 1278(b) election was made, enter the amount of market discount that accrued on the debt instrument during the tax year in the amount of $10 or more.
    • Acquisition premium:  For a taxable covered security acquired with acquisition premium, enter the amount of premium amortization for the part of the year the debt instrument was owned by the holder.
    • Description:  Enter description.
    • Original issue discount on U.S. Treasury obligations:  Enter amount of original issue discount of U.S. Treasury obligations.
    • Investment expenses:  Enter any expenses related to investment.
    • Bond premium:  For a taxable covered security acquired at a premium, enter the amount of bond premium amortization allocable to the interest paid during the tax year, unless you were notified in writing that the holder did not want to amortize bond premium under section 171.  If you are required to report bond premium amortization and you reported a net amount of interest in box 2, leave this box blank.
    • Tax-exempt OID:  For a tax-exempt obligation that is a covered security acquired on or after January 1 of the current tax year, enter the OID for the part of the year it was owned by the record holder. You may, but are not required to, report the OID for a tax-exempt obligation that is a covered security acquired before January 1 of the current tax year.
    • State (1):  Enter state abbreviation.
    • State identification no. (1):  Enter payer's state number.
    • State tax withheld (1):  Enter state income tax withheld.
    • State (2):  Enter state abbreviation.
    • State identification no. (2):  Enter payer's state number.
    • State tax withheld (2):  Enter state income tax withheld.
    • FATCA filing requirement:  Check this box if the payer is filing Form 1099-OID to satisfy a chapter 4 account reporting requirement.
    • 2nd TIN Notice:  Check this box if notified by the IRS twice within 3 calendar years that the recipient provided an incorrect TIN.
    • Account Number:  A number assigned to recipient by the payer.  This field is optional except for the following cases:
      • The recipient has multiple returns for the same return type.
      • The returns are filed using the E-file Center.
      • The “FATCA filing requirement” box is checked. 
  7. Click Save.
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