1099-OIDs

[Snaggletooth]

These days, Forms 1099-OID have become extremely rare. Why?

1. Bonds are paying such low interest that investors have put their money into things that have better returns, so bond investments are down.
2. Interest rates are so low interest that purchasing bonds at a premium is rare or so little that the OID doesn't calculate.
3. Issuers have turned to issue 1099-INT instead of 1099-OID.
4. Your choice???

[Rapid Robert]

These days, Forms 1099-OID have become extremely rare. Why?

They've always been extremely rare.

Interest rates are so low interest that purchasing bonds at a premium is rare or so little that the OID doesn't calculate

That would be amortizable bond premium, not OID.

I don't think use of OID has anything to do with interest rates. Isn't it just a way to pay interest out all at once, at the end of the bond life, instead of the taxpayer having to clip coupons twice a year and then the issuer has the overhead of processing the periodic payments?