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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
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Page 3 of 4 Instructions for Forms 1099-INT and 1099-OID 9:57 - 21-NOV-2002
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
Reporting Interest and OID. If you are reporting stated Box 7. Investment Expenses
interest and OID on an obligation, you may report both the For single-class REMICs only, see Box 7. Investment
interest and the OID on Form 1099-OID. It is not necessary to Expenses under Rules for REMICs, FASITs, and Issuers of
file both Forms 1099-INT and 1099-OID. On Form 1099-OID, CDOs on page INT-4.
report the interest in box 2 and the OID in box 1 or 6. However,
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Page 4 of 4 Instructions for Forms 1099-INT and 1099-OID 9:57 - 21-NOV-2002
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
Rules for REMICs, FASITs, and Issuers of CDOs furnished to the IRS. The statement also must show the
REMICs, holders of ownership interests in FASITs, issuers of information specified in Regulations section 1.6049-7(f)(2)(ii). In
CDOs, and any broker or middleman who holds as a nominee a addition, the statement furnished by a REMIC must show, for
REMIC or FASIT regular interest or CDO must file Form each calendar quarter, the information specified in Regulations
1099-OID. The form is used to report OID of $10 or more section 1.6049-7(f)(3). Also see Regulations section
accrued to a REMIC or FASIT regular interest holder or to a 1.6049-7(f)(3)(ii) for information that may be required to be
holder of a CDO. Also use Form 1099-OID to report other reported to a real estate investment trust (REIT) that holds a
interest accrued to a REMIC or FASIT regular interest holder REMIC regular interest.
during the year or paid to a holder of a CDO. You may use A single-class REMIC (as defined in Temporary Regulations
Form 1099-INT rather than Form 1099-OID to report interest for section 1.67-3T(a)(2)(ii)(B)) must include in the statement the
an instrument issued with OID if no OID is includible in the investment expenses paid or accrued during each calendar
regular interest holder’s or CDO holder’s income for the year. quarter by the REMIC for which the REMIC is allowed a
You are not required to file or issue Form 1099-OID for deduction under section 212 and the proportionate share of
exempt recipients including the following: those investment expenses allocated to the regular interest
• A corporation. holder.
• A broker. The statement must be furnished to holders by March 15. To
• A middleman/nominee. meet the statement requirement, you may furnish a copy of
• A financial institution. Form 1099-OID and a separate statement containing the
• Any IRA or Archer MSA. additional information to the REMIC or FASIT regular interest or
• A tax-exempt organization. CDO holder.
For additional exempt recipients, see Regulations section
1.6049-7(c). For information about reporting income to REMIC residual
interest holders, see the instructions for Schedule Q (Form
Box 1. Original Issue Discount for 2003 1066), Quarterly Notice to Residual Interest Holder of REMIC
Report in box 1 the aggregate amount of OID includible in the Taxable Income or Net Loss Allocation, in the separate
gross income of each REMIC or FASIT regular interest or CDO Instructions for Form 1066.
holder for the period during the year for which the return is
made. No amount should be reported in box 6. Form 8811 and reporting by brokers or middlemen.
REMICs, holders of ownership interests in FASITs, and issuers
Box 2. Other Periodic Interest of CDOs must also file Form 8811, Information Return for Real
Report in box 2 any amount of interest, other than OID, accrued Estate Mortgage Investment Conduits (REMICs) and Issuers of
to each REMIC or FASIT regular interest holder or paid to each Collateralized Debt Obligations, within 30 days after the start-up
CDO holder. If you are a single-class REMIC (as defined in date of the REMIC or issue date of a FASIT regular interest or
Temporary Regulations section 1.67-3T(a)(2)(ii)(B)), increase CDO. The IRS will use the information on Forms 8811 to
the amount otherwise reportable in box 2 by the regular interest update Pub. 938, Real Estate Mortgage Investment Conduits
holder’s share of investment expenses of the REMIC for the (REMICs) Reporting Information, for use by certain brokers,
year. middlemen, corporations, and others specified in Regulations
section 1.6049-7(e)(4). Pub. 938 is available only on the IRS
Box 7. Investment Expenses Web Site at www.irs.gov.
Enter the regular interest holder’s pro rata share of investment
expenses deductible by a single-class REMIC. For the requirements that a REMIC or CDO issuer (including
the holder of the ownership interest in a FASIT) or a broker or
Statements to holders. For each Form 1099-OID you are middleman who holds a REMIC or FASIT regular interest or a
required to file, you must furnish a statement to the REMIC or CDO furnish certain information on request, see Regulations
FASIT regular interest or CDO holder identified on the form. sections 1.6049-7(e) and 1.6049-7(f)(7).
The statement must contain the information shown on Form
1099-OID, including the legend shown on Copy B of the official For more information about FASITs, see sections 860H
Form 1099-OID, and an indication that these items are being through 860L.
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