Revised Statement as of April 26, 2024

[NelehCr0z]

I just got a notice from my bank that they sent a Revised Statement as of 4/26/2024 of my 2023 Tax and Year-End Statement to the IRS.

This revised statement now has information on the Summary of Form 1099-OID box, which previously was empty when I got the original statement last February 15, 2024. It now has an amount of over $200 in the first line with the description, "Original Issue Discount (Non-US Treasury obligation). This is related to the Fixed Rate Notes that I bought last 6/27/2023, and for which I have not received any interests yet. This notes will mature this year on July 30, 2024.

Since I already filed my tax return last March 15, 2024. I don't know what to do with this notice. Am I required to file an amended return? Or can I just include this 1099-OID information when I file my 2024 Tax Return next year? Please advise.

I will greatly appreciate your prompt reply. Thank you in advance.

[Mike9241]

yes you need to amend to report the OID which is taxable as interest income.

OID arises when you buy debt for less than maturity value

OID increase your basis in the note so that if you hold to maturity there is no capital gain/loss

for more see

https://www.investopedia.com/1099-oid-form-understanding-your-1099-oid-form-4782372 

[NelehCr0z]

I bought the 13Mo Fixed Rate note for 10K, which is the same amount I will be getting when it matures this year on July 30, 2024, plus the accumulated interests. I have not received any interests on this note since I bought it last June 2023, as I will be getting the full principal plus interests upon maturity. So why did the bank send me a revised 2023 Statement with the 1099-OID now  included? It is like reporting interests income which I have not even received yet.

And if in case I need to amend my 2023 tax return because of this 1099-OID, how do I go about it? I have no idea how to amend a return as I have not done it before. Can I call Turbo Tax Customer Service to ask for guidance? What number should I call?

Thank you so much. I will be looking forward to your prompt reply.

[JotikaT2]

Even though you did not receive the income yet, it is still treated as being received over the life of the loan and is therefore reported on your tax return.  This FAQ has some guidance on entering the OID into your tax return.

To amend your tax return, refer to the following links for guidance:

• How do I amend my state return?
• How do I amend my federal tax return for this year?

[NelehCr0z]

Hi Jotika,

Good morning.

First, thank you for replying to my inquiry. I really appreciate it.

When I called my bank and asked them about the form 1099-OID, they told me that they made a mistake because I did not buy the notes at a discount, hence I am not supposed to get an OID. They will reverse the 1099-OID to correct their mistake and so I don't need to amend my tax return. Thanks GOD! GOD is Good all the time!

Have a great and blessed day!

Best,

Nelie