Free Trial: TheSiteFactory.com

1099-OID

Technical topics regarding tax preparation.
#1
CP Hay  
Posts:
18
Joined:
3-Apr-2019 5:24pm
Location:
NEW YORK (NY)
How would you handle a situation where a 1099-OID should have been issued in a previous year but wasn't?
 

#2
lucyko  
Posts:
818
Joined:
27-Jul-2014 10:19pm
Location:
Orange County,CA
On my clients who have 1099-OID, it is normally displayed on it's own separate page .However it is easy to miss due to the voluminous size of the consolidated 1099 report .

After verifying that you don't have it, I would contact the brokerage firm and determine why it's not reported and request a "corrected 1099-OID " After obtaining the corrected copy you should consider preparing an amended return. (small OID income amounts of less than $100 are considered de-minimis by IRS.)

The other option is to do nothing and wait to see if you receive a CP 2000 Notice .
 

#3
sjrcpa  
Posts:
2775
Joined:
23-Apr-2014 5:27pm
Location:
Maryland
1)Issue it late and advise client of penalty.

or

2)Skip it and do it on time from now on.

Depends on client circumstances, risk tolerance, etc.
 

#4
Nilodop  
Posts:
13805
Joined:
21-Apr-2014 9:28am
Location:
Pennsylvania
Fascinating. lucyko assumes the form is missing per client who is the recipient of the OID income. sjrcpa assumes it's never been issued by the client who is required to issue it. CP Hay's facts fit both. I vote for the second interpretation. Maybe we'll find out.
 

#5
CP Hay  
Posts:
18
Joined:
3-Apr-2019 5:24pm
Location:
NEW YORK (NY)
Sorry I should have been more clear. The question came up because a corporation issued a convertible note but did not issue Form 1099-OID.
 


Return to Taxation



Who is online

Users browsing this forum: Google [Bot], lenraphael and 67 guests