Invested in a note that paid quarterly but interest was not paid out but put back into the investment. Issuer said no 1099 needed until payout. True?

[ktbrinkman]

In order fo the Issuer of the note to revise the 1099s, he wants to know the "statute" I am referring to requiring a revised 1099 for the years I did not receive a 1099. (If I am right, I need to amend returns to include the requested revised 1099s...What penalties am I going to face)?

[DaveF1006]

To clarify, what kind of a note is this and what kind of investment was the interest being reinvested to?