In the United States, a Form 1099-OID is a tax form intended to be submitted to the Internal Revenue Service by the holder of debt instruments (such as bonds, notes, or certificates) which were discounted at purchase to report the taxable difference between the instruments' actual value and the discounted purchase price.[1][2] Like other 1099 forms, it is normally filled out by a payer of income — for example, the issuer or seller of a discounted bond — and sent both to tax authorities and the recipient of the income.
Fraudulent use edit
1099-OID fraud consists in filing Form 1099-OID with a false withholding information to reduce taxable income.[3] Promoters of the fraud allege that the withheld amount exists in a secret bank account, a claim that originates from the redemption movement. The IRS has taken notice of 1099-OID fraud schemes and has successfully brought legal action against them.[4]
References edit
- ^ "Form 1099-OID" (PDF). irs.gov. Internal Revenue Service. Retrieved 21 October 2016.
- ^ "Publication 1212 - Main Content". irs.gov. Internal Revenue Service. Retrieved 21 October 2016.
- ^ Peter J. Reilly (18 August 2016). "The OID Fraud And Criminal Gullibility". Forbes.com. Retrieved 21 October 2016.
- ^ IR-2018-48
.svg){kind=small} | This United States government–related article is a stub. You can help Wikipedia by expanding it. |