You must prepare a Form 1099-OID for each person who is a holder of record of the obligation if the total daily portions of OID for that person is at least $10. See the instructions for box 1, later, for taxable OID and box 11, later, for tax-exempt OID.
Ordinarily, you will file only one Form 1099-OID for the depositor or holder of a particular obligation for the calendar year. If a person holds more than one discount obligation, issue a separate Form 1099-OID for each obligation. However, if a person holds more than one certificate, you can file a single Form 1099-OID only if
they are the same issue,
held the same amount of time during the calendar year,
acquired at the same time,
acquired for the same price, and
all debt elections (or lack of elections) are the same for all certificates.
If you are a broker or middleman who holds a bank CD as nominee, whether or not you sold the CD to the owner, you must determine the amount of OID includible in the income of the owner, if any, and report it on Form 1099-OID.
Issuers of certain publicly offered debt instruments having OID must file Form 8281, Information Return for Publicly Offered Original Issue Discount Instruments, generally within 30 days after the date of issuance, or, if later, the date of registration with the Securities and Exchange Commission.
You are not required to file Form 1099-OID for payments made to certain payees including a corporation, a tax-exempt organization, any individual retirement arrangement (IRA), an Archer medical savings account (MSA), Medicare Advantage MSA, health savings account (HSA), a U.S. agency, a state, the District of Columbia, a U.S. possession, or a registered securities or commodities dealer.
If you are reporting qualified stated interest and OID on an obligation, you may report both the interest and the OID on Form 1099-OID. It is not necessary to file both Forms 1099-INT and 1099-OID. On Form 1099-OID, report the qualified stated interest in box 2 and the OID in box 1, 8, or 11, as applicable. You may choose to report the interest on Form 1099-INT and the OID on Form 1099-OID.
For a covered security acquired with acquisition premium, you must report the amount of acquisition premium amortization for the tax year. See Regulations section 1.6045-1(a)(15)(i)(C) to determine if a debt instrument is a covered security. In general, you must use the rules in Regulations section 1.1272-2(b)(4) to amortize the acquisition premium. See Regulations section 1.6049-9(c). You may, but are not required to, report the acquisition premium amortization for a tax-exempt obligation that is a covered security acquired before January 1.
For a debt instrument with OID that is a covered security, if you choose to report qualified stated interest in box 2 of Form 1099-OID, report any bond premium amortization allocable to the interest in box 10 of Form 1099-OID and not in boxes 11 through 13 of Form 1099-INT.