This 1099 OID Form 2026 guide explains the IRS Original Issue Discount. Form 1099-OID reports original issue discount information for covered debt instruments and related items. The reported amount may need to be considered with acquisition information and adjustments. Purchase price, holding period and the kind of debt instrument can affect the holder calculation.
Reviewed October 31, 2026. This is an independent guide. The version and availability information below identifies the IRS documents used for this page.
What 1099 OID Form 2026 does and who prepares it
An issuer or intermediary reports original issue discount and related items; the holder checks the applicable income calculation.
For the connected reporting route, see Form 1099-INT. Keep the role of that document separate from the task explained on this page.
| Official form | Form 1099-OID |
|---|---|
| IRS title | Original Issue Discount (Info Copy Only) |
| Guide period | 2026 |
| Target version | Jan 2024 |
| Availability | Current IRS catalog PDF |
| Last checked | October 31, 2026 |
Get the 1099 OID Form 2026 PDF and check its status
Use the IRS source to confirm the document before completing a real filing. The download link is a reference to the official file; it is not a statement that every copy inside the PDF may be printed and submitted. Follow any instructions about electronic filing, scannable copies, recipient copies or attachments.
Which version of 1099 OID Form 2026 should you use?
The 2026 in the title identifies the tax year or calendar-year information addressed by this guide. For a 2026 income reporting document, the preparation or filing activity may occur in 2027. Do not change the income year simply because the calendar has changed. The exact filing or furnishing date comes from the instructions for this form and the filer circumstances.
Records to gather for 1099 OID Form 2026
- OID statement.
- Debt acquisition price and date.
- Bond premium or acquisition premium records.
- Disposition records.
- Prior accrual information.
Keep a working reconciliation with these records. It should show the source of each reported item, any correction made before filing and the reason a different amount appears on a connected form. This is especially useful when a statement is corrected or a prior-year balance continues into the current calculation.
How to work through 1099 OID Form 2026
- Identify the issuer and recipient. Check which person or entity prepares the information return and which person receives a statement. Use the correct copy and filing route for that role.
- Reconcile the underlying records. Compare the statement with the transaction, payroll, account or payment records. Resolve duplicate reporting and unexplained differences before carrying a total into a return.
- Read boxes and codes separately. Different boxes can describe different tax categories. A gross payment, a taxable amount, a withholding credit and an identifying code should not be combined as if they were one measure.
- Use the correct return treatment. An information return supplies facts. It does not independently establish every deduction, exclusion, credit or final tax result for the recipient.
- Address corrections at the source. Check the issuer correction process for an incorrect statement. If a related tax return has already been filed, review separately whether that return also needs a correction.
Form-specific IRS instructions and reporting details
The following points retain the operative wording of the IRS documents linked above. Read each point with its stated conditions and the applicable form version. References to another form or section describe a connected requirement; they do not mean that every reader must file every referenced document.
Also, file Form 1099-OID for any person for whom you withheld and paid any foreign tax on OID or from whom you withheld (and did not refund) any federal income tax under the backup withholding rules even if the amount of the OID is less than $10.
Enter any qualified stated interest paid or credited on this obligation during the year. However, you may report any qualified stated interest on this obligation on Form 1099-INT rather than on Form 1099-OID. For example, you may report any qualified stated interest on Treasury Inflation Protected Securities in box 3 of Form 1099-INT rather than in box 2 of Form 1099-OID. For a discussion of REMICs, FASITs, and CDOs, see the instructions, later.
Enter backup withholding. For example, if a recipient does not furnish its TIN to you in the manner required, you must backup withhold. The applicable interest rate applies to amounts required to be reported in boxes 1, 2, and 8, but is limited to the cash paid on these obligations. Before applying the applicable interest rate, you may reduce the amounts reported in boxes 1 and 2 by the amount reported in box 3.
For more information on backup withholding, including the applicable rate, see part N in the current General Instructions for Certain Information Returns. For information on requesting the recipient's TIN, see part J in the current General Instructions for Certain Information Returns.
Additional reporting conditions
For a covered security acquired with market discount and OID, if the recipient 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. For more details, see Regulations section 1.6045-1(n). Unless the recipient notified you that the recipient did not make a section 1276(b) election, use the constant yield method described in section 1276(b)(2) to determine the accruals of market discount for the debt instrument. See Regulations section 1.6045-1(n)(11)(i)(B).
You may, but are not required to, report the market discount for a tax-exempt obligation that is a covered security acquired before January 1, 2017.
Enter the CUSIP number, if any. If there is no CUSIP number, enter the abbreviation for the stock exchange, the abbreviation for the issuer used by the stock exchange, the coupon rate, and the year of maturity (for example, NYSE XYZ 121/2 25). If the issuer of the obligation is other than the payer, show the name of the issuer.
Calculations and supporting information
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. See Regulations sections 1.6045-1(n)(5) and 1.6049-9(b). For a tax-exempt covered security acquired at a premium, enter the amount of bond premium amortization allocable to the interest paid during the tax year.
If you are required to report bond premium amortization and you reported a net amount of interest in box 2, leave this box blank.
If the OID attributable to a trust interest holder (TIH) exceeds $10 for the calendar year, trustees and middlemen must use Form 1099-OID to report both the gross amount of OID (box 1) and interest (box 2) of the WHFIT that is attributable to the TIH. If the trustee provides WHFIT information using the safe harbor rules in Regulations section 1.671-5(f)(1) or (g)(1), the trustee or middleman must determine the amounts reported on Form 1099-OID under Regulations section 1.671-5(f)(2) or (g)(2), as appropriate.
Rules for REMICs, FASITs, and Issuers of CDOs In the case of FASIT, these reporting rules apply only to FASITs in existence on October 22, 2004, to the extent that regular interests issued by the FASIT before that date continue to remain outstanding in accordance with the original terms of issue.
Exceptions and related reporting
REMICs, holders of ownership interests in FASITs, issuers of CDOs, and any broker or middleman who holds as a nominee a REMIC or FASIT regular interest or CDO must file Form 1099-OID. The form is used to report OID of $10 or more accrued to a REMIC or FASIT regular interest holder or to a holder of a CDO. Also, use Form 1099-OID to report other interest accrued to a REMIC or FASIT regular interest holder during the year or paid to a holder of a CDO.
You may use Form 1099-INT rather than Form 1099-OID to report interest for an instrument issued with OID if no OID is includible in the regular interest holder's or CDO holder's income for the year. You are not required to file or issue Form 1099-OID for exempt recipients including, but not limited to, the following. • A corporation. • A broker. • A middleman/nominee. • A financial institution. • Any IRA, Archer MSA, Medicare Advantage MSA, or HSA. • A tax-exempt organization. For additional exempt recipients, see Regulations section 1.6049-7(c).
Box 1. Original Issue Discount Report in box 1 the aggregate amount of OID includible in the gross income of each REMIC or FASIT regular interest holder or CDO holder for the period during the year for which the return is made. No amount should be reported in box 8.
Further form details
Box 2. Other Periodic Interest Report in box 2 any amount of interest, other than OID, accrued to each REMIC or FASIT regular interest holder or paid to each CDO holder. If you are a single-class REMIC (as defined in Temporary Regulations section 1.67-3T(a)(2)(ii)(B)), increase the amount otherwise reportable in box 2 by the regular interest holder's share of investment expenses of the REMIC for the year.
Statements to Holders For each Form 1099-OID you are required to file, you must furnish a statement to the REMIC or FASIT regular interest holder or CDO holder identified on the form. The statement must contain the information shown on Form 1099-OID, including the legend shown on Copy B of the official Form 1099-OID, and an indication that these items are being furnished to the IRS. The statement must also show the information specified in Regulations section 1.6049-7(f)(2)(ii).
In addition, the statement furnished by a REMIC must show, for each calendar quarter, the information specified in Regulations section 1.6049-7(f)(3). Also, see Regulations section 1.6049-7(f)(3)(ii) for information that may be required to be reported to a real estate investment trust (REIT) that holds a REMIC regular interest.
Reading the lines and boxes
These selected labels come from the linked target PDF. They are a reading aid, not a replacement for the full line instructions or a completed calculation. Match the label and document version before transferring any amount.
| Line or box | Label in the source form | What to check |
|---|---|---|
| 2 | Other periodic interest | Check the applicable line instructions and keep the source workpaper with the return records. Transfer only the information that matches the field and reporting period. |
| 5 | Market discount | Check the applicable line instructions and keep the source workpaper with the return records. Transfer only the information that matches the field and reporting period. |
A practical example
An investor purchases a debt instrument after its original issue date. The investor compares the statement with acquisition records and checks any required adjustments before reporting the appropriate interest information.
This example illustrates the order of the review. It does not assume an unverified deduction, exemption, treaty rate or final tax amount. The applicable form instructions and the actual records determine the result.
Common mistakes to avoid with 1099 OID Form 2026
- Do not treat every box as an additional separate interest amount.
- Check the adjustment rules applicable to how the instrument was acquired.
- Keep tax-exempt and taxable information distinct.
Questions about 1099 OID Form 2026
Does receiving or downloading this form mean I must file it?
An issuer or intermediary reports original issue discount and related items; the holder checks the applicable income calculation. The form purpose and the applicable filing or furnishing conditions determine the action. Downloading a blank PDF does not itself create a filing obligation or establish eligibility for a tax benefit.
Is the revision date always the same as the tax year?
No. Some forms show a tax year, while continuing-use forms show a revision date and ask separately for the reporting period. Check the actual document and instructions. Do not relabel a payment or transaction solely because it was reported in a later calendar year.
What should I do if the underlying information is wrong?
Do not treat every box as an additional separate interest amount. Keep the original record and the correction trail. The issuer correction process, an amended return and an updated certificate can be different procedures. Choose the process that matches the document and the actual error.
Which records should I keep with the completed form?
Retain the source documents, applicable worksheets, submitted version and filing or furnishing confirmations. For this form, the working file should include OID statement, debt acquisition price and date, bond premium or acquisition premium records. Keep continuing balances and prior-year support for as long as they remain relevant under the applicable recordkeeping rules.
Related forms and next steps
Use these guides when the connected issue applies to your records. Each page has its own purpose, reporting year and availability status.