Form 1099-OID
{{Short description|IRS tax form}}
{{Use mdy dates|date=February 2025}}
{{Use American English|date=February 2025}}
In the United States, a Form 1099-OID is a tax form intended to be submitted to the Internal Revenue Service by the holder of debt instruments (such as bonds, notes, or certificates) which were discounted at purchase to report the taxable difference between the instruments' actual value and the discounted purchase price.{{cite web|url=https://www.irs.gov/pub/irs-pdf/f1099oid.pdf|title=Form 1099-OID|author=|website=irs.gov|publisher=Internal Revenue Service|access-date=October 21, 2016|archive-date=October 22, 2016|archive-url=https://web.archive.org/web/20161022093517/https://www.irs.gov/pub/irs-pdf/f1099oid.pdf|url-status=live}}{{cite web |url=https://www.irs.gov/publications/p1212/ar02.html|title=Publication 1212 - Main Content|author=|website=irs.gov|publisher=Internal Revenue Service|access-date=October 21, 2016}} Like other 1099 forms, it is normally filled out by a payer of income — for example, the issuer or seller of a discounted bond — and sent both to tax authorities and the recipient of the income.
Fraudulent use
{{Main article|1099-OID fraud}}
1099-OID fraud consists in filing Form 1099-OID with a false withholding information to reduce taxable income.{{cite web |url=https://www.forbes.com/sites/peterjreilly/2014/08/18/the-oid-fraud-and-criminal-gullibility/#67025a391ff1 |title=The OID Fraud And Criminal Gullibility |author=Peter J. Reilly |date=August 18, 2016 |website=Forbes.com |access-date=October 21, 2016 |archive-date=October 22, 2016 |archive-url=https://web.archive.org/web/20161022085416/http://www.forbes.com/sites/peterjreilly/2014/08/18/the-oid-fraud-and-criminal-gullibility/#67025a391ff1 |url-status=live }} Promoters of the fraud allege that the withheld amount exists in a secret bank account, a claim that originates from the redemption movement. The IRS has taken notice of 1099-OID fraud schemes and has successfully brought legal action against them.{{Cite web |url=https://www.irs.gov/newsroom/taxpayers-alerted-against-falsely-inflated-refunds-in-dirty-dozen-list-seniors-many-others-at-risk |title=IR-2018-48 |access-date=September 3, 2018 |archive-date=September 3, 2018 |archive-url=https://web.archive.org/web/20180903083534/https://www.irs.gov/newsroom/taxpayers-alerted-against-falsely-inflated-refunds-in-dirty-dozen-list-seniors-many-others-at-risk |url-status=live }}
References
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Category:Personal taxes in the United States
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