Publication 1212 (Rev January 2024) Guide to Original Issue Discount (OID) Instruments-2025

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Publication 1212 from the IRS provides guidance on Original Issue Discount (OID) debt instruments, detailing definitions, reporting requirements for brokers and owners, and instructions for calculating OID. It includes information on various types of debt instruments, such as long-term and short-term obligations, stripped bonds, and tax-exempt bonds. The publication also outlines how to report OID income on tax returns and offers resources for obtaining further tax help.

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Click ‘Get Form’ to open it in the editor.
Begin by reviewing the Introduction section, which outlines the purpose of the publication and its relevance to OID debt instruments.
Navigate to the Definitions section. Here, fill in key terms such as 'Original issue discount' and 'Yield to maturity' as they apply to your specific instruments.
Proceed to the Debt Instruments in the OID Tables. Use our platform's tools to highlight or annotate important details about each instrument listed.
For brokers and middlemen, refer to the Information for Brokers section. Ensure you complete any necessary forms like Form 1099-OID directly within the editor.
Finally, review your entries for accuracy before saving or exporting your completed document for submission.

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We have answers to the most popular questions from our customers. If you can't find an answer to your question, please contact us.

Where can I get a 1099-OID form?

Form 1099-OID is usually sent by a brokerage company that holds the debt instruments for investors that have OID.

What is the OID issuance discount?

The discount from the face value of a bond or other debt instrument at the time that it is issued. Under relevant tax rules, OID is the difference between the stated redemption price at maturity and the offering price.

What is the original issue discount instrument?

OID is a form of interest. It is the excess of a debt instruments stated redemption price at maturity over its issue price (acquisition price for a stripped bond or coupon). Zero coupon bonds and debt instruments that pay no stated interest until maturity are examples of debt instruments that have OID.

What is the original issue discount on a 1099-OID?

You will receive a 1099-OID form if you have reportable original issue discount interest. Original issue discount is the excess of an obligations stated redemption price at maturity over its issue price, and it is taxable as interest over the life of the obligation.