E-File Form 1099-OID Online to
Report Original Issue Discount

Issuers, brokers, financial institutions, trustees, nominees, and other applicable filers may be required to file Form 1099-OID. Generally, you must file when the reportable OID for a recipient is $10 or more for the year. You may also need to file when the amount is below
$10 if:

• Foreign tax was withheld and paid on the OID.
• Federal income tax was withheld under backup withholding and was not refunded.

No. The $10 OID reporting threshold remains unchanged for 2026. Recent federal legislation increased the reporting threshold for certain payments reported on Forms 1099-MISC and 1099-NEC to $2,000, but that change does not apply to Form 1099-OID. The $10 OID threshold remains in effect.

Form W-9 provides the recipient's legal name and taxpayer identification number (TIN), which help you prepare accurate information returns.

Collecting recipient information before filing can help you:

• Verify the recipient's name and TIN.
• Reduce IRS name and TIN mismatches.
• Keep recipient information ready for filing.
• Reduce the need for corrections after submission.

Recipient copies are due by February 1, 2027. The IRS filing deadline is March 1, 2027 for paper returns and March 31, 2027 for electronic returns. If any of these dates fall on a weekend or holiday, the deadline moves to the next business day.

Form 1099-OID generally isn't required when the reportable OID is less than $10 and no foreign tax or backup withholding applies. Certain recipients are also exempt from Form 1099-OID reporting, including corporations, brokers, middlemen or nominees, financial institutions, certain retirement or medical accounts, and tax-exempt organizations.

OID on certain instruments, such as short-term debt instruments with a maturity of one year or less, may be subject to different reporting rules. Interest that is not OID may generally be reported on Form 1099-INT, depending on the applicable reporting requirements.

The IRS may charge $60 to $340 per return for late or incorrect Form 1099-OID filings. Intentional disregard can result in a penalty of $680, with no annual maximum.

The other tiers are capped annually — for returns due in 2027, $244,500 to $1,397,000 for small businesses (average annual gross receipts of $5 million or less) and $698,500 to $4,191,500 for larger filers. Amounts are indexed for inflation each year.

Filing Form 8809 can provide an automatic 30-day extension to file Form 1099-OID with the IRS. Form 8809 must generally be filed by the original due date of the information returns. The extension applies to filing with the IRS and does not automatically extend the deadline for furnishing recipient copies.

If you need more time to furnish borrower copies specifically, file Form 15397 by the original due date.

Both forms report interest-related income, but they are used for different types of reportable amounts.