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How Can I File My 2011 Taxes

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How Can I File My 2011 Taxes

How can i file my 2011 taxes Publication 1212 - Main Content Table of Contents Definitions Debt Instruments on the OID List Debt Instruments Not on the OID List Information for Brokers and Other MiddlemenShort-Term Obligations Redeemed at Maturity Long-Term Debt Instruments Certificates of Deposit Bearer Bonds and Coupons Backup Withholding Information for Owners of OID Debt InstrumentsExceptions. How can i file my 2011 taxes Adjustment for premium. How can i file my 2011 taxes Adjustment for acquisition premium. How can i file my 2011 taxes Adjustment for market discount. How can i file my 2011 taxes Form 1099-OID How To Report OID Figuring OID on Long-Term Debt Instruments Figuring OID on Stripped Bonds and Coupons How To Get Tax HelpLow Income Taxpayer Clinics Definitions The following terms are used throughout this publication. How can i file my 2011 taxes “Original issue discount” is defined first. How can i file my 2011 taxes The other terms are listed alphabetically. How can i file my 2011 taxes Original issue discount (OID). How can i file my 2011 taxes   OID is a form of interest. How can i file my 2011 taxes It is the excess of a debt instrument's stated redemption price at maturity over its issue price (acquisition price for a stripped bond or coupon). How can i file my 2011 taxes Zero coupon bonds and debt instruments that pay no stated interest until maturity are examples of debt instruments that have OID. How can i file my 2011 taxes Accrual period. How can i file my 2011 taxes   An accrual period is an interval of time used to measure OID. How can i file my 2011 taxes The length of an accrual period can be 6 months, a year, or some other period, depending on when the debt instrument was issued. How can i file my 2011 taxes Acquisition premium. How can i file my 2011 taxes   Acquisition premium is the excess of a debt instrument's adjusted basis immediately after purchase, including purchase at original issue, over the debt instrument's adjusted issue price at that time. How can i file my 2011 taxes A debt instrument does not have acquisition premium, however, if the debt instrument was purchased at a premium. How can i file my 2011 taxes See Premium, later. How can i file my 2011 taxes Adjusted issue price. How can i file my 2011 taxes   The adjusted issue price of a debt instrument at the beginning of an accrual period is used to figure the OID allocable to that period. How can i file my 2011 taxes In general, the adjusted issue price at the beginning of the debt instrument's first accrual period is its issue price. How can i file my 2011 taxes The adjusted issue price at the beginning of any subsequent accrual period is the sum of the issue price and all the OID includible in income before that accrual period minus any payment previously made on the debt instrument, other than a payment of qualified stated interest. How can i file my 2011 taxes Debt instrument. How can i file my 2011 taxes   The term “debt instrument” means any instrument or contractual arrangement that constitutes indebtedness under general principles of federal income tax law (including, for example, a bond, debenture, note, certificate, or other evidence of indebtedness). How can i file my 2011 taxes It generally does not include an annuity contract. How can i file my 2011 taxes Issue price. How can i file my 2011 taxes   For debt instruments listed in Section I-A and Section I-B, the issue price generally is the initial offering price to the public (excluding bond houses and brokers) at which a substantial amount of these instruments was sold. How can i file my 2011 taxes Market discount. How can i file my 2011 taxes   Market discount arises when a debt instrument purchased in the secondary market has decreased in value since its issue date, generally because of an increase in interest rates. How can i file my 2011 taxes An OID debt instrument has market discount if your adjusted basis in the debt instrument immediately after you acquired it (usually its purchase price) was less than the debt instrument's issue price plus the total OID that accrued before you acquired it. How can i file my 2011 taxes The market discount is the difference between the issue price plus accrued OID and your adjusted basis. How can i file my 2011 taxes Premium. How can i file my 2011 taxes   A debt instrument is purchased at a premium if its adjusted basis immediately after purchase is greater than the total of all amounts payable on the debt instrument after the purchase date, other than qualified stated interest. How can i file my 2011 taxes The premium is the excess of the adjusted basis over the payable amounts. How can i file my 2011 taxes See Publication 550 for information on the tax treatment of bond premium. How can i file my 2011 taxes Qualified stated interest. How can i file my 2011 taxes   In general, qualified stated interest is stated interest that is unconditionally payable in cash or property (other than debt instruments of the issuer) at least annually over the term of the debt instrument at a single fixed rate. How can i file my 2011 taxes Stated redemption price at maturity. How can i file my 2011 taxes   A debt instrument's stated redemption price at maturity is the sum of all amounts (principal and interest) payable on the debt instrument other than qualified stated interest. How can i file my 2011 taxes Yield to maturity (YTM). How can i file my 2011 taxes   In general, the YTM is the discount rate that, when used in figuring the present value of all principal and interest payments, produces an amount equal to the issue price of the debt instrument. How can i file my 2011 taxes The YTM is generally shown on the face of the debt instrument or in the literature you receive from your broker. How can i file my 2011 taxes If you do not have this information, consult your broker, tax advisor, or the issuer. How can i file my 2011 taxes Debt Instruments on the OID List The OID list on the IRS website can be used by brokers and other middlemen to prepare information returns. How can i file my 2011 taxes If you own a listed debt instrument, you generally should not rely on the information in the OID list to determine (or compare) the OID to be reported on your tax return. How can i file my 2011 taxes The OID amounts listed are figured without reference to the price or date at which you acquired the debt instrument. How can i file my 2011 taxes For information about determining the OID to be reported on your tax return, see the instructions for figuring OID under Information for Owners of OID Debt Instruments, later. How can i file my 2011 taxes The following discussions explain what information is contained in each section of the list. How can i file my 2011 taxes Section I. How can i file my 2011 taxes   This section contains publicly offered, long-term debt instruments. How can i file my 2011 taxes Section I-A: Corporate Debt Instruments Issued Before 1985. How can i file my 2011 taxes Section I-B: Corporate Debt Instruments Issued After 1984. How can i file my 2011 taxes Section I-C: Inflation-Indexed Debt Instruments. How can i file my 2011 taxes For each publicly offered debt instrument in Section I, the list contains the following information. How can i file my 2011 taxes The name of the issuer. How can i file my 2011 taxes The Committee on Uniform Security Identification Procedures (CUSIP) number. How can i file my 2011 taxes The issue date. How can i file my 2011 taxes The maturity date. How can i file my 2011 taxes The issue price expressed as a percent of principal or of stated redemption price at maturity. How can i file my 2011 taxes The annual stated or coupon interest rate. How can i file my 2011 taxes (This rate is shown as 0. How can i file my 2011 taxes 00 if no annual interest payments are provided. How can i file my 2011 taxes ) The yield to maturity will be added to Section I-B for bonds issued after December 31, 2006. How can i file my 2011 taxes The total OID accrued up to January 1 of a calendar year. How can i file my 2011 taxes (This information is not available for every instrument. How can i file my 2011 taxes ) For long-term debt instruments issued after July 1, 1982, the daily OID for the accrual periods falling in a calendar year and a subsequent year. How can i file my 2011 taxes The total OID per $1,000 of principal or maturity value for a calendar year and a subsequent year. How can i file my 2011 taxes Section II. How can i file my 2011 taxes   This section contains stripped coupons and principal components of U. How can i file my 2011 taxes S. How can i file my 2011 taxes Treasury and Government-Sponsored Enterprise debt instruments. How can i file my 2011 taxes These stripped components are available through the Department of the Treasury's Separate Trading of Registered Interest and Principal of Securities (STRIPS) program and government-sponsored enterprises such as the Resolution Funding Corporation. How can i file my 2011 taxes This section also includes debt instruments backed by U. How can i file my 2011 taxes S. How can i file my 2011 taxes Treasury securities that represent ownership interests in those securities. How can i file my 2011 taxes   The obligations listed in Section II are arranged by maturity date. How can i file my 2011 taxes The amounts listed are the total OID for a calendar year per $1,000 of redemption price. How can i file my 2011 taxes Section III. How can i file my 2011 taxes   This section contains short-term discount obligations. How can i file my 2011 taxes Section III-A: Short-Term U. How can i file my 2011 taxes S. How can i file my 2011 taxes Treasury Bills. How can i file my 2011 taxes Section III-B: Federal Home Loan Banks. How can i file my 2011 taxes Section III-C: Federal National Mortgage Association. How can i file my 2011 taxes Section III-D: Federal Farm Credit Banks. How can i file my 2011 taxes Section III-E: Federal Home Loan Mortgage Corporation. How can i file my 2011 taxes Section III-F: Federal Agricultural Mortgage Corporation. How can i file my 2011 taxes    Information that supplements Section III-A is available on the Internet at http://www. How can i file my 2011 taxes treasurydirect. How can i file my 2011 taxes gov/tdhome. How can i file my 2011 taxes htm. How can i file my 2011 taxes   The short-term obligations listed in this section are arranged by maturity date. How can i file my 2011 taxes For each obligation, the list contains the CUSIP number, maturity date, issue date, issue price (expressed as a percent of principal), and discount to be reported as interest for a calendar year per $1,000 of redemption price. How can i file my 2011 taxes Brokers and other middlemen should rely on the issue price information in Section III only if they are unable to determine the price actually paid by the owner. How can i file my 2011 taxes Debt Instruments Not on the OID List The list of debt instruments discussed earlier does not contain the following items. How can i file my 2011 taxes U. How can i file my 2011 taxes S. How can i file my 2011 taxes savings bonds. How can i file my 2011 taxes Certificates of deposit and other face-amount certificates issued at a discount, including syndicated certificates of deposit. How can i file my 2011 taxes Obligations issued by tax-exempt organizations. How can i file my 2011 taxes OID debt instruments that matured or were entirely called by the issuer before the tables were posted on the IRS website. How can i file my 2011 taxes Mortgage-backed securities and mortgage participation certificates. How can i file my 2011 taxes Long-term OID debt instruments issued before May 28, 1969. How can i file my 2011 taxes Short-term obligations, other than the obligations listed in Section III. How can i file my 2011 taxes Debt instruments issued at a discount by states or their political subdivisions. How can i file my 2011 taxes REMIC regular interests and CDOs. How can i file my 2011 taxes Commercial paper and banker's acceptances issued at a discount. How can i file my 2011 taxes Obligations issued at a discount by individuals. How can i file my 2011 taxes Foreign obligations not traded in the United States and obligations not issued in the United States. How can i file my 2011 taxes Information for Brokers and Other Middlemen The following discussions contain specific instructions for brokers and middlemen who hold or redeem a debt instrument for the owner. How can i file my 2011 taxes In general, you must file a Form 1099 for the debt instrument if the interest or OID to be included in the owner's income for a calendar year totals $10 or more. How can i file my 2011 taxes You also must file a Form 1099 if you were required to deduct and withhold tax, even if the interest or OID is less than $10. How can i file my 2011 taxes See Backup Withholding, later. How can i file my 2011 taxes If you must file a Form 1099, furnish a copy to the owner of the debt instrument by January 31 in the year it is due. How can i file my 2011 taxes File all your Forms 1099 with the IRS, accompanied by Form 1096, by February 28 in the year it is due (March 31 if you file electronically). How can i file my 2011 taxes Electronic payee statements. How can i file my 2011 taxes   You can issue Form 1099-OID electronically with the consent of the recipient. How can i file my 2011 taxes More information. How can i file my 2011 taxes   For more information, including penalties for failure to file (or furnish) required information returns or statements, see the General Instructions for Certain Information Returns (Forms 1098, 1099, 3921, 3922, 5498, and W-2G) for the appropriate calendar year. How can i file my 2011 taxes Short-Term Obligations Redeemed at Maturity If you redeem a short-term discount obligation for the owner at maturity, you must report the discount as interest on Form 1099-INT. How can i file my 2011 taxes To figure the discount, use the purchase price shown on the owner's copy of the purchase confirmation receipt or similar record, or the price shown in your transaction records. How can i file my 2011 taxes If you sell the obligation for the owner before maturity, you must file Form 1099-B to reflect the gross proceeds to the seller. How can i file my 2011 taxes Do not report the accrued discount to the date of sale on either Form 1099-INT or Form 1099-OID. How can i file my 2011 taxes If the owner's purchase price cannot be determined, figure the discount as if the owner had purchased the obligation at its original issue price. How can i file my 2011 taxes A special rule is used to determine the original issue price for information reporting on U. How can i file my 2011 taxes S. How can i file my 2011 taxes Treasury bills (T-bills) listed in Section III-A. How can i file my 2011 taxes Under this rule, you treat as the original issue price of the T-bill the noncompetitive (weighted average of accepted auction bids) discount price for the longest-maturity T-bill maturing on the same date as the T-bill being redeemed. How can i file my 2011 taxes This noncompetitive discount price is the issue price (expressed as a percent of principal) shown in Section III-A. How can i file my 2011 taxes A similar rule is used to figure the discount on short-term discount obligations issued by the organizations listed in Section III-B through Section III-F. How can i file my 2011 taxes Example 1. How can i file my 2011 taxes There are 13-week and 26-week T-bills maturing on the same date as the T-bill being redeemed. How can i file my 2011 taxes The price actually paid by the owner cannot be established by owner or middleman records. How can i file my 2011 taxes You treat as the issue price of the T-bill the noncompetitive discount price (expressed as a percent of principal) shown in Section III-A for a 26-week bill maturing on the same date as the T-bill redeemed. How can i file my 2011 taxes The interest you report on Form 1099-INT is the OID (per $1,000 of principal) shown in Section III-A for that obligation. How can i file my 2011 taxes Long-Term Debt Instruments If you hold a long-term OID debt instrument as a nominee for the true owner, you generally must file Form 1099-OID. How can i file my 2011 taxes For this purpose, you can rely on Section I of the OID list to determine the following information. How can i file my 2011 taxes Whether a debt instrument has OID. How can i file my 2011 taxes The OID to be reported on the Form 1099-OID. How can i file my 2011 taxes In general, you must report OID on publicly offered, long-term debt instruments listed in Section I. How can i file my 2011 taxes You also can report OID on other long-term debt instruments. How can i file my 2011 taxes Form 1099-OID. How can i file my 2011 taxes   On Form 1099-OID for a calendar year show the following information. How can i file my 2011 taxes Box 1. How can i file my 2011 taxes The OID for the actual dates the owner held the debt instruments during a calendar year. How can i file my 2011 taxes To determine this amount, see Figuring OID, next. How can i file my 2011 taxes Box 2. How can i file my 2011 taxes The qualified stated interest paid or credited during the calendar year. How can i file my 2011 taxes Interest reported here is not reported on Form 1099-INT. How can i file my 2011 taxes The qualified stated interest on Treasury inflation-protected securities may be reported on Form 1099-INT in box 3 instead. How can i file my 2011 taxes Box 3. How can i file my 2011 taxes Any interest or principal forfeited because of an early withdrawal that the owner can deduct from gross income. How can i file my 2011 taxes Do not reduce the amounts in boxes 1 and 2 by the forfeiture. How can i file my 2011 taxes Box 4. How can i file my 2011 taxes Any backup withholding for this debt instrument. How can i file my 2011 taxes Box 7. How can i file my 2011 taxes The CUSIP number, if any. How can i file my 2011 taxes If there is no CUSIP number, give a description of the debt instrument, including the abbreviation for the stock exchange, the abbreviation used by the stock exchange for the issuer, the coupon rate, and the year of maturity (for example, NYSE XYZ 12. How can i file my 2011 taxes 50 2006). How can i file my 2011 taxes If the issuer of the debt instrument is other than the payer, show the name of the issuer in this box. How can i file my 2011 taxes Box 8. How can i file my 2011 taxes The OID on a U. How can i file my 2011 taxes S. How can i file my 2011 taxes Treasury obligation for the part of the year the owner held the debt instrument. How can i file my 2011 taxes Box 9. How can i file my 2011 taxes Investment expenses passed on to holders of a single-class REMIC. How can i file my 2011 taxes Boxes 10-12. How can i file my 2011 taxes Use to report any state income tax withheld for this debt instrument. How can i file my 2011 taxes Figuring OID. How can i file my 2011 taxes   You can determine the OID on a long-term debt instrument by using either of the following. How can i file my 2011 taxes Section I of the OID list. How can i file my 2011 taxes The income tax regulations. How can i file my 2011 taxes Using Section I. How can i file my 2011 taxes   If the owner held the debt instrument for the entire calendar year, report the OID shown in Section I for the calendar year. How can i file my 2011 taxes Because OID is listed for each $1,000 of stated redemption price at maturity, you must adjust the listed amount to reflect the debt instrument's actual stated redemption price at maturity. How can i file my 2011 taxes For example, if the debt instrument's stated redemption price at maturity is $500, report one-half the listed OID. How can i file my 2011 taxes   If the owner held the debt instrument for less than the entire calendar year, figure the OID to report as follows. How can i file my 2011 taxes Look up the daily OID for the first accrual period in the calendar year during which the owner held the debt instrument. How can i file my 2011 taxes Multiply the daily OID by the number of days the owner held the debt instrument during that accrual period. How can i file my 2011 taxes Repeat steps (1) and (2) for any remaining accrual periods for the year during which the owner held the debt instrument. How can i file my 2011 taxes Add the results in steps (2) and (3) to determine the owner's OID per $1,000 of stated redemption price at maturity. How can i file my 2011 taxes If necessary, adjust the OID in (4) to reflect the debt instrument's stated redemption price at maturity. How can i file my 2011 taxes Report the result on Form 1099-OID in box 1. How can i file my 2011 taxes Using the income tax regulations. How can i file my 2011 taxes   Instead of using Section I to figure OID, you can use the regulations under sections 1272 through 1275 of the Internal Revenue Code. How can i file my 2011 taxes For example, under the regulations, you can use monthly accrual periods in figuring OID for a debt instrument issued after April 3, 1994, that provides for monthly payments. How can i file my 2011 taxes (If you use Section I-B, the OID is figured using 6-month accrual periods. How can i file my 2011 taxes )   For a general explanation of the rules for figuring OID under the regulations, see Figuring OID on Long-Term Debt Instruments under Information for Owners of OID Debt Instruments, later. How can i file my 2011 taxes Certificates of Deposit If you hold a bank certificate of deposit (CD) as a nominee, you must determine whether the CD has OID and any OID includible in the income of the owner. How can i file my 2011 taxes You must file an information return showing the reportable interest and OID, if any, on the CD. How can i file my 2011 taxes These rules apply whether or not you sold the CD to the owner. How can i file my 2011 taxes Report OID on a CD in the same way as OID on other debt instruments. How can i file my 2011 taxes See Short-Term Obligations Redeemed at Maturity and Long-Term Debt Instruments, earlier. How can i file my 2011 taxes Bearer Bonds and Coupons If a coupon from a bearer bond is presented to you for collection before the bond matures, you generally must report the interest on Form 1099-INT. How can i file my 2011 taxes However, do not report the interest if either of the following apply. How can i file my 2011 taxes You hold the bond as a nominee for the true owner. How can i file my 2011 taxes The payee is a foreign person. How can i file my 2011 taxes See Payments to foreign person under Backup Withholding, later. How can i file my 2011 taxes Because you cannot assume the presenter of the coupon also owns the bond, you should not report OID on the bond on Form 1099-OID. How can i file my 2011 taxes The coupon may have been “stripped” (separated) from the bond and separately purchased. How can i file my 2011 taxes However, if a long-term bearer bond on the OID list is presented to you for redemption upon call or maturity, you should prepare a Form 1099-OID showing the OID for that calendar year, as well as any coupon interest payments collected at the time of redemption. How can i file my 2011 taxes Backup Withholding If you report OID on Form 1099-OID or interest on Form 1099-INT for a calendar year, you may be required to apply backup withholding to the reportable payment at a rate of 28%. How can i file my 2011 taxes The backup withholding is deducted at the time a cash payment is made. How can i file my 2011 taxes See Pub. How can i file my 2011 taxes 1281, Backup Withholding for Missing and Incorrect Name/TIN(s), for more information. How can i file my 2011 taxes Backup withholding generally applies in the following situations. How can i file my 2011 taxes The payee does not give you a taxpayer identification number (TIN). How can i file my 2011 taxes The IRS notifies you that the payee gave an incorrect TIN. How can i file my 2011 taxes The IRS notifies you that the payee is subject to backup withholding due to payee underreporting. How can i file my 2011 taxes For debt instruments acquired after 1983: The payee does not certify, under penalties of perjury, that he or she is not subject to backup withholding under (3), or The payee does not certify, under penalties of perjury, that the TIN given is correct. How can i file my 2011 taxes However, for short-term discount obligations (other than government obligations), bearer bonds and coupons, and U. How can i file my 2011 taxes S. How can i file my 2011 taxes savings bonds, backup withholding applies only if the payee does not give you a TIN or gives you an obviously incorrect number for a TIN. How can i file my 2011 taxes Short-term obligations. How can i file my 2011 taxes   Backup withholding applies to OID on a short-term obligation only when the OID is paid at maturity. How can i file my 2011 taxes However, backup withholding applies to any interest payable before maturity when the interest is paid or credited. How can i file my 2011 taxes   If the owner of a short-term obligation at maturity is not the original owner and can establish the purchase price of the obligation, the amount subject to backup withholding must be determined by treating the purchase price as the issue price. How can i file my 2011 taxes However, you can choose to disregard that price if it would require significant manual intervention in the computer or recordkeeping system used for the obligation. How can i file my 2011 taxes If the purchase price of a listed obligation is not established or is disregarded, you must use the issue price shown in Section III. How can i file my 2011 taxes Long-term obligations. How can i file my 2011 taxes   If no cash payments are made on a long-term obligation before maturity, backup withholding applies only at maturity. How can i file my 2011 taxes The amount subject to backup withholding is the OID includible in the owner's gross income for the calendar year when the obligation matures. How can i file my 2011 taxes The amount to be withheld is limited to the cash paid. How can i file my 2011 taxes Registered long-term obligations with cash payments. How can i file my 2011 taxes   If a registered long-term obligation has cash payments before maturity, backup withholding applies when a cash payment is made. How can i file my 2011 taxes The amount subject to backup withholding is the total of the qualified stated interest (defined earlier under Definitions) and OID includible in the owner's gross income for the calendar year when the payment is made. How can i file my 2011 taxes If more than one cash payment is made during the year, the OID subject to withholding for the year must be allocated among the expected cash payments in the ratio that each bears to the total of the expected cash payments. How can i file my 2011 taxes For any payment, the required withholding is limited to the cash paid. How can i file my 2011 taxes Payee not the original owner. How can i file my 2011 taxes   If the payee is not the original owner of the obligation, the OID subject to backup withholding is the OID includible in the gross income of all owners during the calendar year (without regard to any amount paid by the new owner at the time of transfer). How can i file my 2011 taxes The amount subject to backup withholding at maturity of a listed obligation must be determined using the issue price shown in Section I. How can i file my 2011 taxes Bearer long-term obligations with cash payments. How can i file my 2011 taxes   If a bearer long-term obligation has cash payments before maturity, backup withholding applies when the cash payments are made. How can i file my 2011 taxes For payments before maturity, the amount subject to withholding is the qualified stated interest (defined earlier under Definitions) includible in the owner's gross income for the calendar year. How can i file my 2011 taxes For a payment at maturity, the amount subject to withholding is only the total of any qualified stated interest paid at maturity and the OID includible in the owner's gross income for the calendar year when the obligation matures. How can i file my 2011 taxes The required withholding at maturity is limited to the cash paid. How can i file my 2011 taxes Sales and redemptions. How can i file my 2011 taxes   If you report the gross proceeds from a sale, exchange, or redemption of a debt instrument on Form 1099-B for a calendar year, you may be required to withhold 28% of the amount reported. How can i file my 2011 taxes Backup withholding applies in the following situations. How can i file my 2011 taxes The payee does not give you a TIN. How can i file my 2011 taxes The IRS notifies you that the payee gave an incorrect TIN. How can i file my 2011 taxes For debt instruments held in an account opened after 1983, the payee does not certify, under penalties of perjury, that the TIN given is correct. How can i file my 2011 taxes Payments outside the United States to U. How can i file my 2011 taxes S. How can i file my 2011 taxes person. How can i file my 2011 taxes   The requirements for backup withholding and information reporting apply to payments of OID and interest made outside the United States to a U. How can i file my 2011 taxes S. How can i file my 2011 taxes person, a controlled foreign corporation, or a foreign person at least 50% of whose income for the preceding 3-year period is effectively connected with the conduct of a U. How can i file my 2011 taxes S. How can i file my 2011 taxes trade or business. How can i file my 2011 taxes Payments to foreign person. How can i file my 2011 taxes   The following discussions explain the rules for backup withholding and information reporting on payments to foreign persons. How can i file my 2011 taxes U. How can i file my 2011 taxes S. How can i file my 2011 taxes -source amount. How can i file my 2011 taxes   Backup withholding and information reporting are not required for payments of U. How can i file my 2011 taxes S. How can i file my 2011 taxes -source OID, interest, or proceeds from a sale or redemption of an OID instrument if the payee has given you proof (generally the appropriate Form W-8 or an acceptable substitute) that the payee is a foreign person. How can i file my 2011 taxes A U. How can i file my 2011 taxes S. How can i file my 2011 taxes resident is not a foreign person. How can i file my 2011 taxes For proof of the payee's foreign status, you can rely on the appropriate Form W-8 or on documentary evidence for payments made outside the United States to an offshore account or, in case of broker proceeds, a sale effected outside the United States. How can i file my 2011 taxes Receipt of the appropriate Form W-8 does not relieve you from information reporting and backup withholding if you actually know the payee is a U. How can i file my 2011 taxes S. How can i file my 2011 taxes person. How can i file my 2011 taxes   For information about the 28% withholding tax that may apply to payments of U. How can i file my 2011 taxes S. How can i file my 2011 taxes -source OID or interest to foreign persons, see Publication 515. How can i file my 2011 taxes Foreign-source amount. How can i file my 2011 taxes   Backup withholding and information reporting are not required for payments of foreign-source OID and interest made outside the United States. How can i file my 2011 taxes However, if the payments are made inside the United States, the requirements for backup withholding and information reporting will apply unless the payee has given you the appropriate Form W-8 or acceptable substitute as proof that the payee is a foreign person. How can i file my 2011 taxes More information. How can i file my 2011 taxes   For more information about backup withholding and information reporting on foreign-source amounts or payments to foreign persons, see Regulations section 1. How can i file my 2011 taxes 6049-5. How can i file my 2011 taxes Information for Owners of OID Debt Instruments This section is for persons who prepare their own tax returns. How can i file my 2011 taxes It discusses the income tax rules for figuring and reporting OID on long-term debt instruments. How can i file my 2011 taxes It also includes a similar discussion for stripped bonds and coupons, such as zero coupon bonds available through the Department of the Treasury's STRIPS program and government-sponsored enterprises such as the Resolution Funding Corporation. How can i file my 2011 taxes However, the information provided does not cover every situation. How can i file my 2011 taxes More information can be found in the regulations under sections 1271 through 1275 of the Internal Revenue Code. How can i file my 2011 taxes Including OID in income. How can i file my 2011 taxes   Generally, you include OID in income as it accrues each year, whether or not you receive any payments from the debt instrument issuer. How can i file my 2011 taxes Exceptions. How can i file my 2011 taxes   The rules for including OID in income as it accrues generally do not apply to the following debt instruments. How can i file my 2011 taxes U. How can i file my 2011 taxes S. How can i file my 2011 taxes savings bonds. How can i file my 2011 taxes Tax-exempt obligations. How can i file my 2011 taxes (However, see Tax-Exempt Bonds and Coupons, later. How can i file my 2011 taxes ) Obligations issued by individuals before March 2, 1984. How can i file my 2011 taxes Loans of $10,000 or less between individuals who are not in the business of lending money. How can i file my 2011 taxes (The dollar limit includes outstanding prior loans by the lender to the borrower. How can i file my 2011 taxes ) This exception does not apply if a principal purpose of the loan is to avoid any federal tax. How can i file my 2011 taxes   See chapter 1 of Publication 550 for information about the rules for these and other types of discounted debt instruments, such as short-term and market discount obligations. How can i file my 2011 taxes Publication 550 also discusses rules for holders of REMIC interests and CDOs. How can i file my 2011 taxes De minimis rule. How can i file my 2011 taxes   You can treat OID as zero if the total OID on a debt instrument is less than one-fourth of 1% (. How can i file my 2011 taxes 0025) of the stated redemption price at maturity multiplied by the number of full years from the date of original issue to maturity. How can i file my 2011 taxes Debt instruments with de minimis OID are not listed in this publication. How can i file my 2011 taxes There are special rules to determine the de minimis amount in the case of debt instruments that provide for more than one payment of principal. How can i file my 2011 taxes Also, the de minimis rules generally do not apply to tax-exempt obligations. How can i file my 2011 taxes Example 2. How can i file my 2011 taxes You bought at issuance a 10-year debt instrument with a stated redemption price at maturity of $1,000, issued at $980 with OID of $20. How can i file my 2011 taxes One-fourth of 1% of $1,000 (the stated redemption price) times 10 (the number of full years from the date of original issue to maturity) equals $25. How can i file my 2011 taxes Under the de minimis rule, you can treat the OID as zero because the $20 discount is less than $25. How can i file my 2011 taxes Example 3. How can i file my 2011 taxes Assume the same facts as Example 2, except the debt instrument was issued at $950. How can i file my 2011 taxes You must report part of the $50 OID each year because it is more than $25. How can i file my 2011 taxes Choice to report all interest as OID. How can i file my 2011 taxes   Generally, you can choose to treat all interest on a debt instrument acquired after April 3, 1994, as OID and include it in gross income by using the constant yield method. How can i file my 2011 taxes See Constant yield method under Debt Instruments Issued After 1984, later, for more information. How can i file my 2011 taxes   For this choice, interest includes stated interest, acquisition discount, OID, de minimis OID, market discount, de minimis market discount, and unstated interest, as adjusted by any amortizable bond premium or acquisition premium. How can i file my 2011 taxes For more information, see Regulations section 1. How can i file my 2011 taxes 1272-3. How can i file my 2011 taxes Purchase after date of original issue. How can i file my 2011 taxes   A debt instrument you purchased after the date of original issue may have premium, acquisition premium, or market discount. How can i file my 2011 taxes If so, the OID reported to you on Form 1099-OID may have to be adjusted. How can i file my 2011 taxes For more information, see Showing an OID adjustment under How To Report OID, later. How can i file my 2011 taxes The following rules generally do not apply to contingent payment debt instruments. How can i file my 2011 taxes Adjustment for premium. How can i file my 2011 taxes   If your debt instrument (other than an inflation-indexed debt instrument) has premium, do not report any OID as ordinary income. How can i file my 2011 taxes Your adjustment is the total OID shown on your Form 1099-OID. How can i file my 2011 taxes Adjustment for acquisition premium. How can i file my 2011 taxes   If your debt instrument has acquisition premium, reduce the OID you report. How can i file my 2011 taxes Your adjustment is the difference between the OID shown on your Form 1099-OID and the reduced OID amount figured using the rules explained later under Figuring OID on Long-Term Debt Instruments. How can i file my 2011 taxes Adjustment for market discount. How can i file my 2011 taxes   If your debt instrument has market discount that you choose to include in income currently, increase the OID you report. How can i file my 2011 taxes Your adjustment is the accrued market discount for the year. How can i file my 2011 taxes See Market Discount Bonds in chapter 1 of Publication 550 for information on how to figure accrued market discount and include it in your income currently and for other information about market discount bonds. How can i file my 2011 taxes If you choose to use the constant yield method to figure accrued market discount, also see Figuring OID on Long-Term Debt Instruments, later. How can i file my 2011 taxes The constant yield method of figuring accrued OID, explained in those discussions under Constant yield method, is also used to figure accrued market discount. How can i file my 2011 taxes For more information concerning premium or market discount on an inflation-indexed debt instrument, see Regulations section 1. How can i file my 2011 taxes 1275-7. How can i file my 2011 taxes Sale, exchange, or redemption. How can i file my 2011 taxes   Generally, you treat your gain or loss from the sale, exchange, or redemption of a discounted debt instrument as a capital gain or loss if you held the debt instrument as a capital asset. How can i file my 2011 taxes If you sold the debt instrument through a broker, you should receive Form 1099-B or an equivalent statement from the broker. How can i file my 2011 taxes Use the Form 1099-B or other statement and your brokerage statements to complete Form 8949, and Schedule D (Form 1040). How can i file my 2011 taxes   Your gain or loss is the difference between the amount you realized on the sale, exchange, or redemption and your basis in the debt instrument. How can i file my 2011 taxes Your basis, generally, is your cost increased by the OID you have included in income each year you held it. How can i file my 2011 taxes In general, to determine your gain or loss on a tax-exempt bond, figure your basis in the bond by adding to your cost the OID you would have included in income if the bond had been taxable. How can i file my 2011 taxes   See chapter 4 of Publication 550 for more information about the tax treatment of the sale or redemption of discounted debt instruments. How can i file my 2011 taxes Example 4. How can i file my 2011 taxes Larry, a calendar year taxpayer, bought a corporate debt instrument at original issue for $86,235. How can i file my 2011 taxes 00 on November 1 of Year 1. How can i file my 2011 taxes The 15-year debt instrument matures on October 31 of Year 16 at a stated redemption price of $100,000. How can i file my 2011 taxes The debt instrument provides for semiannual payments of interest at 10%. How can i file my 2011 taxes Assume the debt instrument is a capital asset in Larry's hands. How can i file my 2011 taxes The debt instrument has $13,765. How can i file my 2011 taxes 00 of OID ($100,000 stated redemption price at maturity minus $86,235. How can i file my 2011 taxes 00 issue price). How can i file my 2011 taxes Larry sold the debt instrument for $90,000 on November 1 of Year 4. How can i file my 2011 taxes Including the OID he will report for the period he held the debt instrument in Year 4, Larry has included $4,556. How can i file my 2011 taxes 00 of OID in income and has increased his basis by that amount to $90,791. How can i file my 2011 taxes 00. How can i file my 2011 taxes Larry has realized a loss of $791. How can i file my 2011 taxes 00. How can i file my 2011 taxes All of Larry's loss is capital loss. How can i file my 2011 taxes Form 1099-OID The issuer of the debt instrument (or your broker, if you purchased or held the debt instrument through a broker) should give you a copy of Form 1099-OID or a similar statement if the accrued OID for the calendar year is $10 or more and the term of the debt instrument is more than 1 year. How can i file my 2011 taxes Form 1099-OID shows all OID income in box 1 except OID on a U. How can i file my 2011 taxes S. How can i file my 2011 taxes Treasury obligation, which is shown in box 8. How can i file my 2011 taxes It also shows, in box 2, any qualified stated interest you must include in income. How can i file my 2011 taxes (However, any qualified stated interest on Treasury inflation-protected securities can be reported on Form 1099-INT in box 3. How can i file my 2011 taxes ) A copy of Form 1099-OID will be sent to the IRS. How can i file my 2011 taxes Do not attach your copy to your tax return. How can i file my 2011 taxes Keep it for your records. How can i file my 2011 taxes If you are required to file a tax return and you receive Form 1099-OID showing taxable amounts, you must report these amounts on your return. How can i file my 2011 taxes A 20% accuracy-related penalty may be charged for underpayment of tax due to either negligence or disregard of rules and regulations or substantial understatement of tax. How can i file my 2011 taxes Form 1099-OID not received. How can i file my 2011 taxes   If you held an OID debt instrument for a calendar year but did not receive a Form 1099-OID, refer to the discussions under Figuring OID on Long-Term Debt Instruments, later, for information on the OID you must report. How can i file my 2011 taxes Refiguring OID. How can i file my 2011 taxes   You must refigure the OID shown on Form 1099-OID, in box 1 or box 8, to determine the proper amount to include in income if one of the following applies. How can i file my 2011 taxes You bought the debt instrument at a premium or at an acquisition premium. How can i file my 2011 taxes The debt instrument is a stripped bond or coupon (including zero coupon bonds backed by U. How can i file my 2011 taxes S. How can i file my 2011 taxes Treasury securities). How can i file my 2011 taxes The debt instrument is a contingent payment or inflation-indexed debt instrument. How can i file my 2011 taxes See the discussions under Figuring OID on Long-Term Debt Instruments or Figuring OID on Stripped Bonds and Coupons, later, for the specific computations. How can i file my 2011 taxes Refiguring interest. How can i file my 2011 taxes   If you disposed of a debt instrument or acquired it from another holder between interest dates, see the discussion under Bonds Sold Between Interest Dates in chapter 1 of Publication 550 for information about refiguring the interest shown on Form 1099-OID in box 2. How can i file my 2011 taxes Nominee. How can i file my 2011 taxes   If you are the holder of an OID debt instrument and you receive a Form 1099-OID that shows your taxpayer identification number and includes amounts belonging to another person, you are considered a “nominee. How can i file my 2011 taxes ” You must file another Form 1099-OID for each actual owner, showing the OID for the owner. How can i file my 2011 taxes Show the owner of the debt instrument as the “recipient” and you as the “payer. How can i file my 2011 taxes ”   Complete Form 1099-OID and Form 1096 and file the forms with the Internal Revenue Service Center for your area. How can i file my 2011 taxes You must also give a copy of the Form 1099-OID to the actual owner. How can i file my 2011 taxes However, you are not required to file a nominee return to show amounts belonging to your spouse. How can i file my 2011 taxes See the Form 1099 instructions for more information. How can i file my 2011 taxes   When preparing your tax return, follow the instructions under Showing an OID adjustment in the next discussion. How can i file my 2011 taxes How To Report OID Generally, you report your taxable interest and OID income on the interest line of Form 1040EZ, Form 1040A, or Form 1040. How can i file my 2011 taxes Form 1040 or Form 1040A required. How can i file my 2011 taxes   You must use Form 1040 or Form 1040A (you cannot use Form 1040EZ) under either of the following conditions. How can i file my 2011 taxes You received a Form 1099-OID as a nominee for the actual owner. How can i file my 2011 taxes Your total interest and OID income for the year was more than $1,500. How can i file my 2011 taxes Form 1040 required. How can i file my 2011 taxes   You must use Form 1040 (you cannot use Form 1040A or Form 1040EZ) if you are reporting more or less OID than the amount shown on Form 1099-OID, other than because you are a nominee. How can i file my 2011 taxes For example, if you paid a premium or an acquisition premium when you purchased the debt instrument, you must use Form 1040 because you will report less OID than shown on Form 1099-OID. How can i file my 2011 taxes Also, you must use Form 1040 if you were charged an early withdrawal penalty. How can i file my 2011 taxes Where to report. How can i file my 2011 taxes   List each payer's name (if a brokerage firm gave you a Form 1099, list the brokerage firm as the payer) and the amount received from each payer on Form 1040A, Schedule B, Part I, line 1, or Form 1040, Schedule B, line 1. How can i file my 2011 taxes Include all OID and periodic interest shown on any Form 1099-OID, boxes 1, 2, and 8, you received for the tax year. How can i file my 2011 taxes Also include any other OID and interest income for which you did not receive a Form 1099. How can i file my 2011 taxes Showing an OID adjustment. How can i file my 2011 taxes   If you use Form 1040 to report more or less OID than shown on Form 1099-OID, list the full OID on Schedule B, Part I, line 1, and follow the instructions under 1 or 2, next. How can i file my 2011 taxes   If you use Form 1040A to report the OID shown on a Form 1099-OID you received as a nominee for the actual owner, list the full OID on Schedule B, Part I, line 1 and follow the instructions under 1. How can i file my 2011 taxes If the OID, as adjusted, is less than the amount shown on Form 1099-OID, show the adjustment as follows. How can i file my 2011 taxes Under your last entry on line 1, subtotal all interest and OID income listed on line 1. How can i file my 2011 taxes Below the subtotal, write “Nominee Distribution” or “OID Adjustment” and show the OID you are not required to report. How can i file my 2011 taxes Subtract that OID from the subtotal and enter the result on line 2. How can i file my 2011 taxes If the OID, as adjusted, is more than the amount shown on Form 1099-OID, show the adjustment as follows. How can i file my 2011 taxes Under your last entry on line 1, subtotal all interest and OID income listed on line 1. How can i file my 2011 taxes Below the subtotal, write “OID Adjustment” and show the additional OID. How can i file my 2011 taxes Add that OID to the subtotal and enter the result on line 2. How can i file my 2011 taxes Figuring OID on Long-Term Debt Instruments How you figure the OID on a long-term debt instrument depends on the date it was issued. How can i file my 2011 taxes It also may depend on the type of the debt instrument. How can i file my 2011 taxes There are different rules for each of the following debt instruments. How can i file my 2011 taxes Corporate debt instruments issued after 1954 and before May 28, 1969, and government debt instruments issued after 1954 and before July 2, 1982. How can i file my 2011 taxes Corporate debt instruments issued after May 27, 1969, and before July 2, 1982. How can i file my 2011 taxes Debt instruments issued after July 1, 1982, and before 1985. How can i file my 2011 taxes Debt instruments issued after 1984 (other than debt instruments described in (5) and (6)). How can i file my 2011 taxes Contingent payment debt instruments issued after August 12, 1996. How can i file my 2011 taxes Inflation-indexed debt instruments (including Treasury inflation-protected securities) issued after January 5, 1997. How can i file my 2011 taxes Zero coupon bonds. How can i file my 2011 taxes   The rules for figuring OID on zero coupon bonds backed by U. How can i file my 2011 taxes S. How can i file my 2011 taxes Treasury securities are discussed under Figuring OID on Stripped Bonds and Coupons, later. How can i file my 2011 taxes Corporate Debt Instruments Issued After 1954 and Before May 28, 1969, and Government Debt Instruments Issued After 1954 and Before July 2, 1982 If you hold these debt instruments as capital assets, you include OID in income only in the year the debt instrument is sold, exchanged, or redeemed, and only if you have a gain. How can i file my 2011 taxes The OID, which is taxed as ordinary income, generally equals the following amount. How can i file my 2011 taxes   number of full months you held the debt instrument  number of full months from date of original issue to date of maturity X original issue discount The balance of the gain is capital gain. How can i file my 2011 taxes If there is a loss on the sale of the debt instrument, the entire loss is a capital loss and no OID is reported. How can i file my 2011 taxes Corporate Debt Instruments Issued After May 27, 1969, and Before July 2, 1982 If you hold these debt instruments as capital assets, you must include part of the OID in income each year you own the debt instruments. How can i file my 2011 taxes For information about showing the correct OID on your tax return, see the discussion under How To Report OID, earlier. How can i file my 2011 taxes Your basis in the debt instrument is increased by the OID you include in income. How can i file my 2011 taxes Form 1099-OID. How can i file my 2011 taxes   You should receive a Form 1099-OID showing OID for the part of the year you held the debt instrument. How can i file my 2011 taxes However, if you paid an acquisition premium, you may need to refigure the OID to report on your tax return. How can i file my 2011 taxes See Reduction for acquisition premium, later. How can i file my 2011 taxes If you held an OID debt instrument in a calendar year but did not receive a Form 1099-OID, see Form 1099-OID not received, immediately below, and refer to Section I-A available at www. How can i file my 2011 taxes irs. How can i file my 2011 taxes gov/pub1212 by clicking the link under Recent Developments. How can i file my 2011 taxes Form 1099-OID not received. How can i file my 2011 taxes    The OID listed is for each $1,000 of redemption price. How can i file my 2011 taxes You must adjust the listed amount if your debt instrument has a different principal amount. How can i file my 2011 taxes For example, if you have a debt instrument with a $500 principal amount, use one-half the listed amount to figure your OID. How can i file my 2011 taxes   If you held the debt instrument the entire year, use the OID shown in Section I-A for a calendar year. How can i file my 2011 taxes (If your debt instrument is not listed in Section I-A, consult the issuer for information about the issue price and the OID that accrued for that year. How can i file my 2011 taxes ) If you did not hold the debt instrument the entire year, figure your OID using the following method. How can i file my 2011 taxes Divide the OID shown by 12. How can i file my 2011 taxes Multiply the result in (1) by the number of complete and partial months (for example, 6½ months) you held the debt instrument during a calendar year. How can i file my 2011 taxes This is the OID to include in income unless you paid an acquisition premium. How can i file my 2011 taxes The reduction for acquisition premium is discussed next. How can i file my 2011 taxes Reduction for acquisition premium. How can i file my 2011 taxes   If you bought the debt instrument at an acquisition premium, figure the OID to include in income as follows. How can i file my 2011 taxes Divide the total OID on the debt instrument by the number of complete months, and any part of a month, from the date of original issue to the maturity date. How can i file my 2011 taxes This is the monthly OID. How can i file my 2011 taxes Subtract from your cost the issue price and the accumulated OID from the date of issue to the date of purchase. How can i file my 2011 taxes (If the result is zero or less, stop here. How can i file my 2011 taxes You did not pay an acquisition premium. How can i file my 2011 taxes ) Divide the amount figured in (2) by the number of complete months, and any part of a month, from the date of your purchase to the maturity date. How can i file my 2011 taxes Subtract the amount figured in (3) from the amount figured in (1). How can i file my 2011 taxes This is the OID to include in income for each month you hold the debt instrument during the year. How can i file my 2011 taxes Transfers during the month. How can i file my 2011 taxes   If you buy or sell a debt instrument on any day other than the same day of the month as the date of original issue, the ratable monthly portion of OID for the month of sale is divided between the seller and the buyer according to the number of days each held the debt instrument. How can i file my 2011 taxes Your holding period for this purpose begins the day you acquire the debt instrument and ends the day before you dispose of it. How can i file my 2011 taxes Debt Instruments Issued After July 1, 1982, and Before 1985 If you hold these debt instruments as capital assets, you must include part of the OID in income each year you own the debt instruments and increase your basis by the amount included. How can i file my 2011 taxes For information about showing the correct OID on your tax return, see How To Report OID, earlier. How can i file my 2011 taxes Form 1099-OID. How can i file my 2011 taxes   You should receive a Form 1099-OID showing OID for the part of the year you held the debt instrument. How can i file my 2011 taxes However, if you paid an acquisition premium, you may need to refigure the OID to report on your tax return. How can i file my 2011 taxes See Constant yield method and the discussions on acquisition premium that follow, later. How can i file my 2011 taxes If you held an OID debt instrument in a calendar year but did not receive a Form 1099-OID, see Form 1099-OID not received, immediately below, and refer to Section I-A available at www. How can i file my 2011 taxes irs. How can i file my 2011 taxes gov/pub1212 by clicking the link under Recent Developments. How can i file my 2011 taxes Form 1099-OID not received. How can i file my 2011 taxes    The OID listed is for each $1,000 of redemption price. How can i file my 2011 taxes You must adjust the listed amount if your debt instrument has a different principal amount. How can i file my 2011 taxes For example, if you have a debt instrument with a $500 principal amount, use one-half the listed amount to figure your OID. How can i file my 2011 taxes   If you held the debt instrument the entire year, use the OID shown in Section I-A. How can i file my 2011 taxes (If your instrument is not listed in Section I-A, consult the issuer for information about the issue price, the yield to maturity, and the OID that accrued for that year. How can i file my 2011 taxes ) If you did not hold the debt instrument the entire year, figure your OID using either of the following methods. How can i file my 2011 taxes Method 1. How can i file my 2011 taxes    Divide the total OID for a calendar year by 365 (366 for leap years). How can i file my 2011 taxes Multiply the result in (1) by the number of days you held the debt instrument during that particular year. How can i file my 2011 taxes  This computation is an approximation and may result in a slightly higher OID than Method 2. How can i file my 2011 taxes Method 2. How can i file my 2011 taxes    Look up the daily OID for the first accrual period you held the debt instrument during a calendar year. How can i file my 2011 taxes (See Accrual period under Constant yield method, next. How can i file my 2011 taxes ) Multiply the daily OID by the number of days you held the debt instrument during that accrual period. How can i file my 2011 taxes If you held the debt instrument for part of both accrual periods, repeat (1) and (2) for the second accrual period. How can i file my 2011 taxes Add the results of (2) and (3). How can i file my 2011 taxes This is the OID to include in income, unless you paid an acquisition premium. How can i file my 2011 taxes (The reduction for acquisition premium is discussed later. How can i file my 2011 taxes ) Constant yield method. How can i file my 2011 taxes   This discussion shows how to figure OID on debt instruments issued after July 1, 1982, and before 1985, using a constant yield method. How can i file my 2011 taxes OID is allocated over the life of the debt instrument through adjustments to the issue price for each accrual period. How can i file my 2011 taxes   Figure the OID allocable to any accrual period as follows. How can i file my 2011 taxes Multiply the adjusted issue price at the beginning of the accrual period by the debt instrument's yield to maturity. How can i file my 2011 taxes Subtract from the result in (1) any qualified stated interest allocable to the accrual period. How can i file my 2011 taxes Accrual period. How can i file my 2011 taxes   An accrual period for any OID debt instrument issued after July 1, 1982, and before 1985 is each 1-year period beginning on the date of the issue of the obligation and each anniversary thereafter, or the shorter period to maturity for the last accrual period. How can i file my 2011 taxes Your tax year will usually include parts of two accrual periods. How can i file my 2011 taxes Daily OID. How can i file my 2011 taxes   The OID for any accrual period is allocated equally to each day in the accrual period. How can i file my 2011 taxes You must include in income the sum of the OID amounts for each day you hold the debt instrument during the year. How can i file my 2011 taxes If your tax year includes parts of two or more accrual periods, you must include the proper daily OID amounts for each accrual period. How can i file my 2011 taxes Figuring daily OID. How can i file my 2011 taxes   The daily OID for the initial accrual period is figured using the following formula. How can i file my 2011 taxes   (ip × ytm) − qsi     p   ip = issue price ytm = yield to maturity qsi = qualified stated interest p = number of days in accrual period         The daily OID for subsequent accrual periods is figured the same way except the adjusted issue price at the beginning of each period is used in the formula instead of the issue price. How can i file my 2011 taxes Reduction for acquisition premium on debt instruments purchased before July 19, 1984. How can i file my 2011 taxes   If you bought the debt instrument at an acquisition premium before July 19, 1984, figure the OID includible in income by reducing the daily OID by the daily acquisition premium. How can i file my 2011 taxes Figure the daily acquisition premium by dividing the total acquisition premium by the number of days in the period beginning on your purchase date and ending on the day before the date of maturity. How can i file my 2011 taxes Reduction for acquisition premium on debt instruments purchased after July 18, 1984. How can i file my 2011 taxes   If you bought the debt instrument at an acquisition premium after July 18, 1984, figure the OID includible in income by reducing the daily OID by the daily acquisition premium. How can i file my 2011 taxes However, the method of figuring the daily acquisition premium is different from the method described in the preceding discussion. How can i file my 2011 taxes To figure the daily acquisition premium under this method, multiply the daily OID by the following fraction. How can i file my 2011 taxes The numerator is the acquisition premium. How can i file my 2011 taxes The denominator is the total OID remaining for the debt instrument after your purchase date. How can i file my 2011 taxes Section I-A is available at www. How can i file my 2011 taxes irs. How can i file my 2011 taxes gov/pub1212 and clicking the link under Recent Developments. How can i file my 2011 taxes Using Section I-A to figure accumulated OID. How can i file my 2011 taxes   If you bought your corporate debt instrument in a calendar year or the subsequent year, you can figure the accumulated OID to the date of purchase by adding the following amounts. How can i file my 2011 taxes The amount from the “Total OID to January 1, YYYY” column for your debt instrument. How can i file my 2011 taxes The OID from January 1 of a calendar year to the date of purchase, figured as follows. How can i file my 2011 taxes Multiply the daily OID for the first accrual period in the calendar year by the number of days from January 1 to the date of purchase, or the end of the accrual period if the debt instrument was purchased in the second or third accrual period. How can i file my 2011 taxes Multiply the daily OID for each subsequent accrual period by the number of days in the period to the date of purchase or the end of the accrual period, whichever applies. How can i file my 2011 taxes Add the amounts figured in (2a) and (2b). How can i file my 2011 taxes Debt Instruments Issued After 1984 If you hold debt instruments issued after 1984, you must report part of the OID in gross income each year that you own the debt instruments. How can i file my 2011 taxes You must include the OID in gross income whether or not you hold the debt instrument as a capital asset. How can i file my 2011 taxes Your basis in the debt instrument is increased by the OID you include in income. How can i file my 2011 taxes For information about showing the correct OID on your tax return, see How To Report OID, earlier. How can i file my 2011 taxes Form 1099-OID. How can i file my 2011 taxes   You should receive a Form 1099-OID showing OID for the part of a calendar year you held the debt instrument. How can i file my 2011 taxes However, if you paid an acquisition premium, you may need to refigure the OID to report on your tax return. How can i file my 2011 taxes See Constant yield method and Reduction for acquisition premium, later. How can i file my 2011 taxes   You may also need to refigure the OID for a contingent payment or inflation-indexed debt instrument on which the amount reported on Form 1099-OID is inaccurate. How can i file my 2011 taxes See Contingent Payment Debt Instruments or Inflation-Indexed Debt Instruments, later. How can i file my 2011 taxes If you held an OID debt instrument in a calendar year but did not receive a Form 1099-OID, see Form 1099-OID not received, immediately below, and refer to Section I-B available at www. How can i file my 2011 taxes irs. How can i file my 2011 taxes gov/pub1212 by clicking the link under Recent Developments. How can i file my 2011 taxes Form 1099-OID not received. How can i file my 2011 taxes   The OID listed is for each $1,000 of redemption price. How can i file my 2011 taxes You must adjust the listed amount if your debt instrument has a different principal amount. How can i file my 2011 taxes For example, if you have a debt instrument with a $500 principal amount, use one-half the listed amount to figure your OID. How can i file my 2011 taxes   Use the OID shown in Section I-B for a calendar year if you held the debt instrument the entire year. How can i file my 2011 taxes (If your debt instrument is not listed in Section I-B, consult the issuer for information about the issue price, the yield to maturity, and the OID that accrued for that year. How can i file my 2011 taxes ) If you did not hold the debt instrument the entire year, figure your OID as follows. How can i file my 2011 taxes Look up the daily OID for the first accrual period in which you held the debt instrument during a calendar year. How can i file my 2011 taxes (See Accrual period under Constant yield method, later. How can i file my 2011 taxes ) Multiply the daily OID by the number of days you held the debt instrument during that accrual period. How can i file my 2011 taxes Repeat (1) and (2) for any remaining accrual periods in which you held the debt instrument. How can i file my 2011 taxes Add the results of (2) and (3). How can i file my 2011 taxes This is the OID to include in income for that year, unless you paid an acquisition premium. How can i file my 2011 taxes (The reduction for acquisition premium is discussed later. How can i file my 2011 taxes ) Tax-exempt bond. How can i file my 2011 taxes   If you own a tax-exempt bond, figure your basis in the bond by adding to your cost the OID you would have included in income if the bond had been taxable. How can i file my 2011 taxes You need to make this adjustment to determine if you have a gain or loss on a later disposition of the bond. How can i file my 2011 taxes In general, use the rules that follow to determine your OID. How can i file my 2011 taxes Constant yield method. How can i file my 2011 taxes   This discussion shows how to figure OID on debt instruments issued after 1984 using a constant yield method. How can i file my 2011 taxes (The special rules that apply to contingent payment debt instruments and inflation-indexed debt instruments are explained later. How can i file my 2011 taxes ) OID is allocated over the life of the debt instrument through adjustments to the issue price for each accrual period. How can i file my 2011 taxes   Figure the OID allocable to any accrual period as follows. How can i file my 2011 taxes Multiply the adjusted issue price at the beginning of the accrual period by a fraction. How can i file my 2011 taxes The numerator of the fraction is the debt instrument's yield to maturity and the denominator is the number of accrual periods per year. How can i file my 2011 taxes The yield must be stated appropriately taking into account the length of the particular accrual period. How can i file my 2011 taxes Subtract from the result in (1) any qualified stated interest allocable to the accrual period. How can i file my 2011 taxes Accrual period. How can i file my 2011 taxes   For debt instruments issued after 1984 and before April 4, 1994, an accrual period is each 6-month period that ends on the day that corresponds to the stated maturity date of the debt instrument or the date 6 months before that date. How can i file my 2011 taxes For example, a debt instrument maturing on March 31 has accrual periods that end on September 30 and March 31 of each calendar year. How can i file my 2011 taxes Any short period is included as the first accrual period. How can i file my 2011 taxes   For debt instruments issued after April 3, 1994, accrual periods may be of any length and may vary in length over the term of the debt instrument, as long as each accrual period is no longer than 1 year and all payments are made on the first or last day of an accrual period. How can i file my 2011 taxes However, the OID listed for these debt instruments in Section I-B has been figured using 6-month accrual periods. How can i file my 2011 taxes Daily OID. How can i file my 2011 taxes   The OID for any accrual period is allocated equally to each day in the accrual period. How can i file my 2011 taxes Figure the amount to include in income by adding the OID for each day you hold the debt instrument during the year. How can i file my 2011 taxes Since your tax year will usually include parts of two or more accrual periods, you must include the proper daily OID for each accrual period. How can i file my 2011 taxes If your debt instrument has 6-month accrual periods, your tax year will usually include one full 6-month accrual period and parts of two other 6-month periods. How can i file my 2011 taxes Figuring daily OID. How can i file my 2011 taxes   The daily OID for the initial accrual period is figured using the following formula. How can i file my 2011 taxes   (ip × ytm/n) − qsi     p   ip = issue price ytm = yield to maturity n = number of accrual periods in 1 year qsi = qualified stated interest p = number of days in accrual period       The daily OID for subsequent accrual periods is figured the same way except the adjusted issue price at the beginning of each period is used in the formula instead of the issue price. How can i file my 2011 taxes Example 5. How can i file my 2011 taxes On January 1 of Year 1, you bought a 15-year, 10% debt instrument of A Corporation at original issue for $86,235. How can i file my 2011 taxes 17. How can i file my 2011 taxes According to the prospectus, the debt instrument matures on December 31 of Year 15 at a stated redemption price of $100,000. How can i file my 2011 taxes The yield to maturity is 12%, compounded semiannually. How can i file my 2011 taxes The debt instrument provides for qualified stated interest payments of $5,000 on June 30 and December 31 of each calendar year. How can i file my 2011 taxes The accrual periods are the 6-month periods ending on each of these dates. How can i file my 2011 taxes The number of days for the first accrual period (January 1 through June 30) is 181 days (182 for leap years). How can i file my 2011 taxes The daily OID for the first accrual period is figured as follows. How can i file my 2011 taxes   ($86,235. How can i file my 2011 taxes 17 x . How can i file my 2011 taxes 12/2) – $5,000     181 days     = $174. How can i file my 2011 taxes 11020 = $. How can i file my 2011 taxes 96193   181           The adjusted issue price at the beginning of the second accrual period is the issue price plus the OID previously includible in income ($86,235. How can i file my 2011 taxes 17 + $174. How can i file my 2011 taxes 11), or $86,409. How can i file my 2011 taxes 28. How can i file my 2011 taxes The number of days for the second accrual period (July 1 through December 31) is 184 days. How can i file my 2011 taxes The daily OID for the second accrual period is figured as follows. How can i file my 2011 taxes   ($86,409. How can i file my 2011 taxes 28 x . How can i file my 2011 taxes 12/2) – $5,000     184 days     = $184. How can i file my 2011 taxes 55681 = $1. How can i file my 2011 taxes 00303   184 Since the first and second accrual periods coincide exactly with your tax year, you include in income for Year 1 the OID allocable to the first two accrual periods, $174. How can i file my 2011 taxes 11 ($. How can i file my 2011 taxes 95665 × 182 days) plus $184. How can i file my 2011 taxes 56 ($1. How can i file my 2011 taxes 00303 × 184 days), or $358. How can i file my 2011 taxes 67. How can i file my 2011 taxes Add the OID to the $10,000 interest you report on your income tax return for Year 1. How can i file my 2011 taxes Example 6. How can i file my 2011 taxes Assume the same facts as in Example 5, except that you bought the debt instrument at original issue on May 1 of Year 1, with a maturity date of April 30, Year 16. How can i file my 2011 taxes Also, the interest payment dates are October 31 and April 30 of each calendar year. How can i file my 2011 taxes The accrual periods are the 6-month periods ending on each of these dates. How can i file my 2011 taxes The number of days for the first accrual period (May 1 through October 31) is 184 days. How can i file my 2011 taxes The daily OID for the first accrual period is figured as follows. How can i file my 2011 taxes   ($86,235. How can i file my 2011 taxes 17 x . How can i file my 2011 taxes 12/2) – $5,000     184 days     = $174. How can i file my 2011 taxes 11020 = $. How can i file my 2011 taxes 94625   184           The number of days for the second accrual period (November 1 through April 30) is 181 days (182 for leap years). How can i file my 2011 taxes The daily OID for the second accrual period is figured as follows. How can i file my 2011 taxes   ($86,409. How can i file my 2011 taxes 28 x . How can i file my 2011 taxes 12/2) – $5,000     181 days     = $184. How can i file my 2011 taxes 55681 = $1. How can i file my 2011 taxes 01965   181 If you hold the debt instrument through the end of Year 1, you must include $236. How can i file my 2011 taxes 31 of OID in income. How can i file my 2011 taxes This is $174. How can i file my 2011 taxes 11 ($. How can i file my 2011 taxes 94625 × 184 days) for the period May 1 through October 31 plus $62. How can i file my 2011 taxes 20 ($1. How can i file my 2011 taxes 01965 × 61 days) for the period November 1 through December 31. How can i file my 2011 taxes The OID is added to the $5,000 interest income paid on October 31 of Year 1. How can i file my 2011 taxes Your basis in the debt instrument is increased by the OID you include in income. How can i file my 2011 taxes On January 1 of Year 2, your basis in the A Corporation debt instrument is $86,471. How can i file my 2011 taxes 48 ($86,235. How can i file my 2011 taxes 17 + $236. How can i file my 2011 taxes 31). How can i file my 2011 taxes Short first accrual period. How can i file my 2011 taxes   You may have to make adjustments if a debt instrument has a short first accrual period. How can i file my 2011 taxes For example, a debt instrument with 6-month accrual periods that is issued on February 15 and matures on October 31 has a short first accrual period that ends April 30. How can i file my 2011 taxes (The remaining accrual periods begin on May 1 and November 1. How can i file my 2011 taxes ) For this short period, figure the daily OID as described earlier, but adjust the yield for the length of the short accrual period. How can i file my 2011 taxes You may use any reasonable compounding method in determining OID for a short period. How can i file my 2011 taxes Examples of reasonable compounding methods include continuous compounding and monthly compounding (that is, simple interest within a month). How can i file my 2011 taxes Consult your tax advisor for more information about making this computation. How can i file my 2011 taxes   The OID for the final accrual period is the difference between the amount payable at maturity (other than a payment of qualified stated interest) and the adjusted issue price at the beginning of the final accrual period. How can i file my 2011 taxes Reduction for acquisition premium. How can i file my 2011 taxes   If you bought the debt instrument at an acquisition premium, figure the OID includible in income by reducing the daily OID by the daily acquisition premium. How can i file my 2011 taxes To figure the daily acquisition premium, multiply the daily OID by the following fraction. How can i file my 2011 taxes The numerator is the acquisition premium. How can i file my 2011 taxes The denominator is the total OID remaining for the debt instrument after your purchase date. How can i file my 2011 taxes Example 7. How can i file my 2011 taxes Assume the same facts as in Example 6, except that you bought the debt instrument on November 1 of Year 1 for $87,000, after its original issue on May 1 of Year 1. How can i file my 2011 taxes The adjusted issue price on November 1 of Year 1 is $86,409. How can i file my 2011 taxes 28 ($86,235. How can i file my 2011 taxes 17 + $174. How can i file my 2011 taxes 11). How can i file my 2011 taxes In this case, you paid an acquisition premium of $590. How can i file my 2011 taxes 72 ($87,000 − $86,409. How can i file my 2011 taxes 28). How can i file my 2011 taxes The daily OID for the accrual period November 1 through April 30, reduced for the acquisition premium, is figured as follows. How can i file my 2011 taxes 1) Daily OID on date of purchase (2nd accrual period) $1. How can i file my 2011 taxes 01965*  2)  Acquisition premium $590. How can i file my 2011 taxes 72    3)  Total OID remaining after purchase date ($13,764. How can i file my 2011 taxes 83 − $174. How can i file my 2011 taxes 11) 13,590. How can i file my 2011 taxes 72   4) Line 2 ÷ line 3 . How can i file my 2011 taxes 04346  5)  Line 1 × line 4 . How can i file my 2011 taxes 04432  6)  Daily OID reduced for the acquisition premium. How can i file my 2011 taxes Line 1 − line 5 $0. How can i file my 2011 taxes 97533  * As shown in Example 6. How can i file my 2011 taxes The total OID to include in income for Year 1 is $59. How can i file my 2011 taxes 50 ($. How can i file my 2011 taxes 97533 × 61 days). How can i file my 2011 taxes Contingent Payment Debt Instruments This discussion shows how to figure OID on a contingent payment debt instrument issued after August 12, 1996, that was issued for cash or publicly traded property. How can i file my 2011 taxes In general, a contingent payment debt instrument provides for one or more payments that are contingent as to timing or amount. How can i file my 2011 taxes If you hold a contingent payment bond, you must report OID as it accrues each year. How can i file my 2011 taxes Because the actual payments on a contingent payment debt instrument cannot be known in advance, issuers and holders cannot use the constant yield method (discussed earlier under Debt Instruments Issued After 1984) without making certain assumptions about the payments on the debt instrument. How can i file my 2011 taxes To figure OID accruals on contingent payment debt instruments, holders and issuers must use the noncontingent bond method. How can i file my 2011 taxes Noncontingent bond method. How can i file my 2011 taxes    Under this method, the issuer must compute a comparable yield for the debt instrument and, based on this yield, construct a projected payment schedule for the instrument, which includes a projected fixed amount for each contingent payment. How can i file my 2011 taxes In general, holders and issuers accrue OID on this projected payment schedule using the constant yield method that applies to fixed payment debt instruments. How can i file my 2011 taxes When a contingent payment differs from the projected fixed amount, the holders and issuers make adjustments to their OID accruals. How can i file my 2011 taxes If the actual contingent payment is larger than expected, both the issuer and the holder increase their OID accruals. How can i file my 2011 taxes If the actual contingent payment is smaller than expected, holders and issuers generally decrease their OID accruals. How can i file my 2011 taxes Form 1099-OID. How can i file my 2011 taxes   The amount shown on Form 1099-OID in box 1 you receive for a contingent payment debt instrument may not be the correct amount to include in income. How can i file my 2011 taxes For example, the amount may not be correct if the contingent payment was different from the projected amount. How can i file my 2011 taxes If the amount in box 1 is not correct, you must figure the OID to report on your return under the following rules. How can i file my 2011 taxes For information on showing an OID adjustment on your tax return, see How To Report OID, earlier. How can i file my 2011 taxes Figuring OID. How can i file my 2011 taxes   To figure OID on a contingent payment debt instrument, you need to know the “comparable yield” and “projected payment schedule” of the debt instrument. How can i file my 2011 taxes The issuer must make these available to you. How can i file my 2011 taxes Comparable yield. How can i file my 2011 taxes   The comparable yield generally is the yield at which the issuer would issue a fixed rate debt instrument with terms and conditions similar to those of the contingent payment debt instrument. How can i file my 2011 taxes The comparable yield is determined as of the debt instrument's issue date. How can i file my 2011 taxes Projected payment schedule. How can i file my 2011 taxes   The projected payment schedule for a contingent payment debt instrument includes all fixed payments due under the instrument and a projected fixed amount for each contingent payment. How can i file my 2011 taxes The projected payment schedule is created by the issuer as of the debt instrument's issue date. How can i file my 2011 taxes It is used to determine the issuer's and holder's interest accruals and adjustments. How can i file my 2011 taxes Steps for figuring OID. How can i file my 2011 taxes   Figure the OID on a contingent payment debt instrument in two steps. How can i file my 2011 taxes Figure the OID using the constant yield method (discussed earlier under Debt Instruments Issued After 1984 ) that applies to fixed payment debt instruments. How can i file my 2011 taxes Use the comparable yield as the yield to maturity. How can i file my 2011 taxes In general, use the projected payment schedule to determine the instrument's adjusted issue price at the beginning of each accrual period (other than the initial period). How can i file my 2011 taxes Do not treat any amount payable as qualified stated interest. How can i file my 2011 taxes Adjust the OID in (1) to account for actual contingent payments. How can i file my 2011 taxes If the contingent payment is greater than the projected fixed amount, you have a positive adjustment. How can i file my 2011 taxes If the contingent payment is less than the projected fixed amount, you have a negative adjustment. How can i file my 2011 taxes Net positive adjustment. How can i file my 2011 taxes   A net positive adjustment exists for a tax year when the total of any positive adjustments described in (2) above for the tax year is more than the total of any negative adjustments for the tax year. How can i file my 2011 taxes Treat a net positive adjustment as additional OID for the tax year. How can i file my 2011 taxes Net negative adjustment. How can i file my 2011 taxes   A net negative adjustment exists for a tax year when the total of any negative adjustments described in (2) above for the tax year is more than the total of any positive adjustments for the tax year. How can i file my 2011 taxes Use a net negative adjustment to offset OID on the debt instrument for the tax year. How can i file my 2011 taxes If the net negative adjustment is more than the OID on the debt instrument for the tax year, you can claim the difference as an ordinary loss. How can i file my 2011 taxes However, the amount you can claim as an ordinary loss is limited to the OID on the debt instrument you included in income in prior tax years. How can i file my 2011 taxes You must carry forward any net negative adjustment that is more than the total OID for the tax year and prior tax years and treat it as a negative adjustment in the next tax year. How can i file my 2011 taxes Basis adjustments. How can i file my 2011 taxes   In general, increase your basis in a contingent payment debt instrument by the OID included in income. How can i file my 2011 taxes Your basis, however, is not affected by any negative or positive adjustments. How can i file my 2011 taxes Decrease your basis by any noncontingent payment received and the projected contingent payment scheduled to be received. How can i file my 2011 taxes Treatment of gain or loss on sale or exchange. How can i file my 2011 taxes   If you sell a contingent payment debt instrument at a gain, your gain is ordinary income (interest income), even if you hold the debt instrument as a capital asset. How can i file my 2011 taxes If you sell a contingent payment debt instrument at a loss, your loss is an ordinary loss to the extent of your prior OID accruals on the debt instrument. How can i file my 2011 taxes If the debt instrument is a capital asset, treat any loss that is more than your prior OID accruals as a capital loss. How can i file my 2011 taxes See Regulations section 1. How can i file my 2011 taxes 1275-4 for exceptions to these rules. How can i file my 2011 taxes Premium, acquisition premium, and market discount. How can i file my 2011 taxes   The rules for accruing premium, acquisition premium, and market discount do not apply to a contingent payment debt instrument. How can i file my 2011 taxes See Regulations section 1. How can i file my 2011 taxes 1275-4 to determine how to account for these items. How can i file my 2011 taxes Inflation-Indexed Debt Instruments This discussion shows how you figure OID on certain inflation-indexed debt instruments issued after January 5, 1997. How can i file my 2011 taxes An inflation-indexed debt instrument is generally a debt instrument on which the payments are adjusted for inflation and d
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How can i file my 2011 taxes Publication 15-A - Introductory Material Table of Contents Future Developments What's New Reminders Introduction Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 15-A, such as legislation enacted after it was published, go to www. How can i file my 2011 taxes irs. How can i file my 2011 taxes gov/pub15a. How can i file my 2011 taxes What's New Social security and Medicare tax for 2014. How can i file my 2011 taxes  The social security tax rate is 6. How can i file my 2011 taxes 2% each for the employee and employer, unchanged from 2013. How can i file my 2011 taxes The social security wage base limit is $117,000. How can i file my 2011 taxes The Medicare tax rate is 1. How can i file my 2011 taxes 45% each for the employee and employer, unchanged from 2013. How can i file my 2011 taxes There is no wage base limit for Medicare tax. How can i file my 2011 taxes Social security and Medicare taxes apply to the wages of household workers you pay $1,900 or more in cash or an equivalent form of compensation. How can i file my 2011 taxes Social security and Medicare taxes apply to election workers who are paid $1,600 or more in cash or an equivalent form of compensation. How can i file my 2011 taxes Withholding allowance. How can i file my 2011 taxes  The 2014 amount for one withholding allowance on an annual basis is $3,950. How can i file my 2011 taxes Same-sex marriage. How can i file my 2011 taxes  For federal tax purposes, individuals of the same sex are considered married if they were lawfully married in a state (or foreign country) whose laws authorize the marriage of two individuals of the same sex, even if the state (or foreign country) in which they now live does not recognize same-sex marriage. How can i file my 2011 taxes For more information, see Revenue Ruling 2013-17, 2013-38 I. How can i file my 2011 taxes R. How can i file my 2011 taxes B. How can i file my 2011 taxes 201, available at www. How can i file my 2011 taxes irs. How can i file my 2011 taxes gov/irb/2013-38_IRB/ar07. How can i file my 2011 taxes html. How can i file my 2011 taxes Notice 2013-61 provides special administrative procedures for employers to make claims for refunds or adjustments of overpayments of social security and Medicare taxes with respect to certain same-sex spouse benefits before expiration of the period of limitations. How can i file my 2011 taxes Notice 2013-61, 2013-44 I. How can i file my 2011 taxes R. How can i file my 2011 taxes B. How can i file my 2011 taxes 432, is available at www. How can i file my 2011 taxes irs. How can i file my 2011 taxes gov/irb/2013-44_IRB/ar10. How can i file my 2011 taxes html. How can i file my 2011 taxes Reminders Additional Medicare Tax withholding. How can i file my 2011 taxes . How can i file my 2011 taxes  In addition to withholding Medicare tax at 1. How can i file my 2011 taxes 45%, you must withhold a 0. How can i file my 2011 taxes 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. How can i file my 2011 taxes You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. How can i file my 2011 taxes Additional Medicare Tax is only imposed on the employee. How can i file my 2011 taxes There is no employer share of Additional Medicare Tax. How can i file my 2011 taxes All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. How can i file my 2011 taxes For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments, in section 15 of Publication 15 (Circular E), Employer's Tax Guide. How can i file my 2011 taxes For more information on Additional Medicare Tax, visit IRS. How can i file my 2011 taxes gov and enter “Additional Medicare Tax” in the search box. How can i file my 2011 taxes Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans. How can i file my 2011 taxes  The work opportunity tax credit is available for eligible unemployed veterans who begin work on or after November 22, 2011, and before January 1, 2014. How can i file my 2011 taxes Qualified tax-exempt organizations that hire eligible unemployed veterans can claim the work opportunity tax credit against their payroll tax liability using Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans. How can i file my 2011 taxes For more information, visit IRS. How can i file my 2011 taxes gov and enter “work opportunity tax credit” in the search box. How can i file my 2011 taxes COBRA premium assistance credit. How can i file my 2011 taxes  The credit for COBRA premium assistance payments applies to premiums paid for employees involuntarily terminated between September 1, 2008, and May 31, 2010, and to premiums paid for up to 15 months. How can i file my 2011 taxes For more information, see COBRA premium assistance credit in Publication 15 (Circular E). How can i file my 2011 taxes Federal tax deposits must be made by electronic funds transfer. How can i file my 2011 taxes  You must use electronic funds transfer to make all federal tax deposits. How can i file my 2011 taxes Generally, electronic fund transfers are made using the Electronic Federal Tax Payment System (EFTPS). How can i file my 2011 taxes If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. How can i file my 2011 taxes Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. How can i file my 2011 taxes EFTPS is a free service provided by the Department of Treasury. How can i file my 2011 taxes Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. How can i file my 2011 taxes For more information on making federal tax deposits, see How To Deposit in Publication 15 (Circular E). How can i file my 2011 taxes To get more information about EFTPS or to enroll in EFTPS, visit www. How can i file my 2011 taxes eftps. How can i file my 2011 taxes gov or call 1-800-555-4477 or 1-800-733-4829 (TDD). How can i file my 2011 taxes Additional information about EFTPS is also available in Publication 966, Electronic Federal Tax Payment System: A Guide To Getting Started. How can i file my 2011 taxes You must receive written notice from the IRS to file Form 944. How can i file my 2011 taxes  If you have been filing Forms 941, Employer's QUARTERLY Federal Tax Return (or Forms 941-SS, Employer's QUARTERLY Federal Tax Return—American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U. How can i file my 2011 taxes S. How can i file my 2011 taxes Virgin Islands, or Formularios 941-PR, Planilla para la Declaración Federal TRIMESTRAL del Patrono), and believe your employment taxes for the calendar year will be $1,000 or less, and you would like to file Form 944, Employer's ANNUAL Federal Tax Return, instead of Forms 941, you must contact the IRS to request to file Form 944. How can i file my 2011 taxes You must receive written notice from the IRS to file Form 944 instead of Forms 941 before you may file this form. How can i file my 2011 taxes For more information on requesting to file Form 944, visit IRS. How can i file my 2011 taxes gov and enter “file employment taxes annually” in the search box. How can i file my 2011 taxes Employers can request to file Forms 941 instead of Form 944. How can i file my 2011 taxes  If you received notice from the IRS and have been filing Form 944 but would like to file Forms 941 instead, you must contact the IRS to request to file Forms 941. How can i file my 2011 taxes You must receive written notice from the IRS to file Forms 941 instead of Form 944 before you may file these forms. How can i file my 2011 taxes For more information on requesting to file Form 944, visit IRS. How can i file my 2011 taxes gov and enter “file employment taxes annually” in the search box. How can i file my 2011 taxes Aggregate Form 941 filers. How can i file my 2011 taxes  Agents must complete Schedule R (Form 941), Allocation Schedule for Aggregate Form 941 Filers, when filing an aggregate Form 941. How can i file my 2011 taxes Aggregate Forms 941 can only be filed by agents approved by the IRS under section 3504 of the Internal Revenue Code. How can i file my 2011 taxes To request approval to act as an agent for an employer, the agent must file Form 2678, Employer/Payer Appointment of Agent, with the IRS. How can i file my 2011 taxes Aggregate Form 940 filers. How can i file my 2011 taxes  Agents must complete Schedule R (Form 940), Allocation Schedule for Aggregate Form 940 Filers, when filing an aggregate Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. How can i file my 2011 taxes Aggregate Forms 940 may only be filed by agents acting on behalf of home care service recipients who receive home care services through a program administered by a federal, state, or local government. How can i file my 2011 taxes To request approval to act as an agent on behalf of home care service recipients, the agent must file Form 2678 with the IRS. How can i file my 2011 taxes Electronic filing and payment. How can i file my 2011 taxes  Now, more than ever before, businesses can enjoy the benefits of filing and paying their federal taxes electronically. How can i file my 2011 taxes Whether you rely on a tax professional or handle your own taxes, the IRS offers you convenient programs to make filing and payment easier. How can i file my 2011 taxes Spend less time and worry about taxes and more time running your business. How can i file my 2011 taxes Use e-file and the Electronic Federal Tax Payment System (EFTPS) to your benefit. How can i file my 2011 taxes For e-file, visit www. How can i file my 2011 taxes irs. How can i file my 2011 taxes gov/efile for additional information. How can i file my 2011 taxes For EFTPS, visit www. How can i file my 2011 taxes eftps. How can i file my 2011 taxes gov or call EFTPS Customer Service at 1-800-555-4477 or 1-800-733-4829 (TDD). How can i file my 2011 taxes Electronic submission of Forms W-4, W-4P, W-4S and W-4V. How can i file my 2011 taxes  You may set up a system to electronically receive any or all of the following forms (and their Spanish versions, if available) from an employee or payee. How can i file my 2011 taxes Form W-4, Employee's Withholding Allowance Certificate. How can i file my 2011 taxes Form W-4P, Withholding Certificate for Pension or Annuity Payments. How can i file my 2011 taxes Form W-4S, Request for Federal Income Tax Withholding From Sick Pay. How can i file my 2011 taxes Form W-4V, Voluntary Withholding Request. How can i file my 2011 taxes For each form that you establish an electronic submission system for, you must meet each of the following five requirements. How can i file my 2011 taxes The electronic system must ensure that the information received by the payer is the information sent by the payee. How can i file my 2011 taxes The system must document all occasions of user access that result in a submission. How can i file my 2011 taxes In addition, the design and operation of the electronic system, including access procedures, must make it reasonably certain that the person accessing the system and submitting the form is the person identified on the form. How can i file my 2011 taxes The electronic system must provide exactly the same information as the paper form. How can i file my 2011 taxes The electronic submission must be signed with an electronic signature by the payee whose name is on the form. How can i file my 2011 taxes The electronic signature must be the final entry in the submission. How can i file my 2011 taxes Upon request, you must furnish a hard copy of any completed electronic form to the IRS and a statement that, to the best of the payer's knowledge, the electronic form was submitted by the named payee. How can i file my 2011 taxes The hard copy of the electronic form must provide exactly the same information as, but need not be a facsimile of, the paper form. How can i file my 2011 taxes For Form W-4, the signature must be under penalty of perjury, and must contain the same language that appears on the paper version of the form. How can i file my 2011 taxes The electronic system must inform the employee that he or she must make a declaration contained in the perjury statement and that the declaration is made by signing the Form W-4. How can i file my 2011 taxes You must also meet all recordkeeping requirements that apply to the paper forms. How can i file my 2011 taxes For more information, see: Regulations sections 31. How can i file my 2011 taxes 3402(f)(5)-1(c) (for Form W-4), and Announcement 99-6 (for Forms W-4P, W-4S, and W-4V). How can i file my 2011 taxes You can find Announcement 99-6 on page 24 of Internal Revenue Bulletin 1999-4 at www. How can i file my 2011 taxes irs. How can i file my 2011 taxes gov/pub/irs-irbs/irb99-04. How can i file my 2011 taxes pdf. How can i file my 2011 taxes Additional employment tax information. How can i file my 2011 taxes  Visit the IRS website at www. How can i file my 2011 taxes irs. How can i file my 2011 taxes gov/businesses and click on the Employment Taxes link under Businesses Topics. How can i file my 2011 taxes Telephone help. How can i file my 2011 taxes  You can call the IRS Business and Specialty Tax Line with your employment tax questions at 1-800-829-4933. How can i file my 2011 taxes Help for people with disabilities. How can i file my 2011 taxes  You may call 1-800-829-4059 (TDD/TTY for persons who are deaf, heard of hearing, or have a speech disability) with any tax question or to order forms and publications. How can i file my 2011 taxes You may also use this number for assistance with unresolved tax problems. How can i file my 2011 taxes Furnishing Form W-2 to employees electronically. How can i file my 2011 taxes  You may set up a system to furnish Form W-2, Wage and Tax Statement, electronically. How can i file my 2011 taxes Each employee participating must consent (either electronically or by paper document) to receive his or her Form W-2 electronically, and you must notify the employee of all hardware and software requirements to receive the form. How can i file my 2011 taxes You may not send a Form W-2 electronically to any employee who does not consent or who has revoked consent previously provided. How can i file my 2011 taxes To furnish Forms W-2 electronically, you must meet the following disclosure requirements and provide a clear and conspicuous statement of each requirement to your employees. How can i file my 2011 taxes The employee must be informed that he or she will receive a paper Form W-2 if consent is not given to receive it electronically. How can i file my 2011 taxes The employee must be informed of the scope and duration of the consent. How can i file my 2011 taxes The employee must be informed of any procedure for obtaining a paper copy of his or her Form W-2 and whether or not the request for a paper statement is treated as a withdrawal of his or her consent to receiving his or her Form W-2 electronically. How can i file my 2011 taxes The employee must be notified about how to withdraw a consent and the effective date and manner by which the employer will confirm the withdrawn consent. How can i file my 2011 taxes The employee must also be notified that the withdrawn consent does not apply to the previously issued Forms W-2. How can i file my 2011 taxes The employee must be informed about any conditions under which electronic Forms W-2 will no longer be furnished (for example, termination of employment). How can i file my 2011 taxes The employee must be informed of any procedures for updating his or her contact information that enables the employer to provide electronic Forms W-2. How can i file my 2011 taxes The employer must notify the employee of any changes to the employer's contact information. How can i file my 2011 taxes You must furnish electronic Forms W-2 by the same due date as the paper Forms W-2. How can i file my 2011 taxes For more information on furnishing Form W-2 to employees electronically, see Regulations section 31. How can i file my 2011 taxes 6051-1(j). How can i file my 2011 taxes Photographs of missing children. How can i file my 2011 taxes  The IRS is a proud partner with the National Center for Missing and Exploited Children. How can i file my 2011 taxes Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. How can i file my 2011 taxes You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. How can i file my 2011 taxes Introduction This publication supplements Publication 15 (Circular E). How can i file my 2011 taxes It contains specialized and detailed employment tax information supplementing the basic information provided in Publication 15 (Circular E). How can i file my 2011 taxes This publication also contains tables for withholding on distributions of Indian gaming profits to tribal members. How can i file my 2011 taxes Publication 15-B, Employer's Tax Guide to Fringe Benefits, contains information about the employment tax treatment of various types of noncash compensation. How can i file my 2011 taxes Ordering publications and forms. How can i file my 2011 taxes   See Ordering Employer Tax Forms and Publications in Publication 15 (Circular E) and How To Get Tax Help , later, for more information on how to obtain forms and publications. How can i file my 2011 taxes Useful Items - You may want to see: Publication 15-B Employer's Tax Guide to Fringe Benefits 505 Tax Withholding and Estimated Tax 515 Withholding of Tax on Nonresident Aliens and Foreign Entities 583 Starting a Business and Keeping Records 1635 Employer Identification Number: Understanding Your EIN Comments and suggestions. How can i file my 2011 taxes   We welcome your comments about this publication and your suggestions for future editions. How can i file my 2011 taxes    You can write to us at the following address: Internal Revenue Service Tax Forms & Publications Division 1111 Constitution Ave. How can i file my 2011 taxes NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. How can i file my 2011 taxes Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. How can i file my 2011 taxes   You can also send us comments from www. How can i file my 2011 taxes irs. How can i file my 2011 taxes gov/formspubs. How can i file my 2011 taxes Click on More Information and then click on Comment on Tax Forms and Publications. How can i file my 2011 taxes   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax forms, instructions, and publications. How can i file my 2011 taxes Prev  Up  Next   Home   More Online Publications