Instructions for Forms 1099-INT and 1099-OID - Introductory Material
This is archived information that pertains only to the 2006 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.
The following changes have been made to Form 1099-INT.
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Amendments to section 6049 have added two new items of reportable interest income. Section 1303 of the Energy Tax Incentives
Act of 2005
added new section 54 that allows for a credit to holders of clean renewable energy bonds. Section 54(g) requires that the
amount of the credit allowed
to the bondholder (determined without respect to the limitation based on the amount of tax) be included in gross income and
treated as interest
income. Section 101 of the Gulf Zone Opportunity Act of 2005 added new section 1400N that allows a credit to holders of Gulf
bonds. Section
1400N(l)(6) requires that the amount of the credit allowed to the bondholder (determined without respect to the limitation
based on the amount of tax)
be included in gross income and treated as interest income. Both new items of reportable interest income are required by new
section 6049(d)(8) to be
reported on Form 1099-INT, Interest Income. See the instruction for Box 1. Interest Income on
page INT-2.
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Section 502 of the Tax Increase Prevention and Reconciliation Act of 2005 has changed section 6049(b) by requiring that interest
on state or
local bonds, tax-exempt under section 103(a), and interest on specified private activity bonds are no longer excluded from
information reporting. New
box 8 has been added to Form 1099-INT to report all amounts of tax-exempt interest. New box 9 has been added to report that
portion of the interest in
box 8 from qualified private activity bonds required to be reported for alternative minimum tax purposes.
General instructions.
In addition to these specific instructions, you should also use the 2006 General Instructions for Forms 1099, 1098,
5498, and W-2G. Those general
instructions include information about:
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Backup withholding
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Electronic reporting requirements
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Penalties
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Who must file (nominee/middleman)
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When and where to file
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Taxpayer identification numbers
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Statements to recipients
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Corrected and void returns
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Other general topics
You can get the general instructions from the IRS website at
www.irs.gov or by calling 1-800-TAX-FORM (1-800-829-3676).