If you neglected to file 1099 OID 2018, you should file as soon as possible. Most 1099 forms have a three-year statute of limitations. As a result, the IRS can levy a penalty or fine for a missing or incorrect form for three years after the initial deadline. If your organization or business has not yet received a fine for a late 1099 OID 2018, that does not mean you are in the clear.
Prevent late and incorrect filings with an adaptable and semi-automated software tool, like Advanced Micro Solutions. We can help you file late forms and stay on top of tax and wage obligations. We think that the best way to remedy a late form is to prevent it altogether. This is possible with solutions from AMS.
Who Needs to File a 1099 OID?
OIDs, also known as original issue discounts, are a form of interest on a bond issued after 1984. The OID is taxable as it accrues over the term of the bond. OIDs often occur when companies issue bonds at prices lower than their redemption value at maturity. As a result, tax must be paid on that difference.
Before attempting to rectify a mistake, it is important to figure out whether your business needed to file a 1099 OID 2018. Organizations must prepare and distribute form 1099 OID for each individual who holds an OID whose income is at least $10. In other words, those who need to file will need to file in any of the following cases:
- For any person for whom the organization withheld and paid any foreign tax on OID
- If the original issue discount includible in gross income is at least $10
- From whom the organization withheld, but did not refund, and federal income tax under the backup withholding rules even if the amount of the OID is less than $10
This is not a very common form, but you’ll still need to file a form for every situation that meets the above criteria. Because this form is so specific, it can be difficult to know whether the 1099 OID 2018 you missed actually needed to be filed. If you suspect that 2018 taxes and wages were incorrectly filed, consider conducting an internal audit to check.
Prevent Mistakes with a Comprehensive Software Tool
The 1099 OID must often be filed in bulk. If an organization needs to distribute this type of 1099, they’re likely dealing with several dozen copies of the form. A semi-automated software solution can deal with this volume and ensure that no form or recipient slips through the cracks.
Our W2 and 1099 Forms Filer is a great option for all businesses. The tool is compatible with most W2 and 1099 forms. Updates to forms are automatically included, which is important for 1099s, especially. We offer an intuitive and seamless experience, no matter the type of 1099 you need to file. Whether you’re catching up on a 1099 OID 2018 or looking for a more robust accounting solution, we have the answer.