REMICs consequently provide regular interest holders with IRS Form 1099-INT (and Form 1099-OID
, if applicable).
The perpetrator files a fake Form 1099-OID
to justify a false refund claim on a corresponding tax return.
The IRS notes that this latter assumption is at odds with reporting requirements of Form 1099INT, Interest Income, and Form 1099-OID
, Original Issue Discount, and that the customer is not bound by the assumptions that the broker uses to satisfy the reporting requirements.
and then reporting those outstanding debts as Form 1099-OID
deductions, making it look like the entire amount of the debt was withheld as taxes.
The issuer of a taxable bond with OID is required to issue Form 1099-OID
to report the discount to be included as ordinary income on the taxpayer's current-year income tax return.
Although the law is unclear on this point, for interest deemed paid, it is assumed that the lessee should file Form 1099-OID.
467 rental agreement with decreasing payments, presumably Form 1099-OID would be filed by the lessor for the deemed interest payments back to the lessee, while the lessee would report the actual payments of rents on Form 1099-MISC.
Corporations issuing debt obligations now have more definitive guidance for computing the amount of OID for purposes of Form 1099-OID
reporting and for deducting interest expense o their tax returns.
For tax years prior to 1992, brokers are required to issue Form 1099-OID
to each person who is a holder of record on the semi-annual interest payment record date.
If the interest incurred is considered to be OID, the amounts would presumably be reported on Form 1099-OID
, Original Issue Discount.