IRS Instructions for Forms 1099-INT and 1099-OID, Page 6 -
'Reporting interest and bond premium. For a debt instrument with OID that is a covered security, if you choose to report qualified stated interest in box 2 of Form 1099-OID, report any bond premium amortization allocable to the interest in box 10 of Form 1099-OID and not in boxes 11–13 of Form 1099-INT.'
https://www.irs.gov/pub/irs-pdf/i1099int.pdf
Schwab continues to report bond interest on the 1099-INT and then instead of also reporting that same bond’s premium on that same form, they report the premium for that same bond on the 1099-OID. TurboTax won’t allow a bond premium with no corresponding interest claimed on the same bond and gives an error.
This continues to be a problem every year and I was wondering if the IRS has a way to report issues like this. On their website I saw a link to Taxpayer Advocate Service (TAS) and on their website - see below link.
https://www.taxpayeradvocate.irs.gov/home/systemic-advocacy-management-system-sams/
