this fix will work as long as the 1099-int has at least as much us treasury interest income (box 3) as the bond premium.
in that case, enter the premium in box 12, which will reduce the taxable interest. i also added an explanatory statement. the other alternative, if you itemize, is to enter the premium on schedule A under "other expenses" & add something like "bond premium on treasuries" as a descriptor. i suppose you could also report the oid in box 2 of the oid form rather than box 8.
