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1099-OID

PostPosted: 21-Oct-2020 11:03am
by CP Hay
How would you handle a situation where a 1099-OID should have been issued in a previous year but wasn't?

Re: 1099-OID

PostPosted: 21-Oct-2020 4:33pm
by lucyko
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 .

Re: 1099-OID

PostPosted: 21-Oct-2020 5:47pm
by sjrcpa
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.

Re: 1099-OID

PostPosted: 21-Oct-2020 6:27pm
by Nilodop
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.

Re: 1099-OID

PostPosted: 21-Oct-2020 8:23pm
by CP Hay
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.