what research led you to that... recheck IRS publication 550, excerpt below. There is further language related to deferral of OID to maturity for CDs less than 1 year which may be what you're referring to, but that's for discount not regular interest.
for example I have had CDs at Ally in the past which accrue through the year but they always pay whatever is accrued at year-end.
Bottom line, if it paid to your CD account in 2024 and is on your 1099-INT, then that's what you need to report. Your December statement should provide YTD interest for each CD you can check also.
I don't think you can avoid a penalty - but IRS will assume the interest was paid to you evenly throughout the year so you will get penalized on the underpayment on portions from it from each quarter, at 8% underpayment penalty rate. If it was a significant payment in Q4 you may be able to reduce (but entirely eliminate) the penalty by using the 'Annualized Income' method on Form 2210 to specify the timing and only get penalized for a few months. This process is triggered in EasyStep under "Other Tax Situations" > "Underpayment Penalties" [not sure online version I am using desktop], but be aware you will have to lay out the timing of all your AGI/withholding/payments through the year not just the CDs so if anything else was uneven the other way but to your benefit e.g. paid in Q1 but you didn't pay tax on it then, the end result may be a wash or even more penalty. Just depends on your situation but it's worth trying. You may need to review the forms generated under Form 2210 in Forms view, or in the PDF of your full return (the version with 'all forms and worksheets').
If penalties are a concern, remember for 2025 to pay estimated taxes for this income accordingly.
Not a CPA/Expert just my 2 cents - hope this helps.
From Pub 550 "Taxable Interest - General":
"Certificates of deposit and other deferred interest ac-
counts. If you buy a certificate of deposit or open a defer-
red interest account, interest may be paid at fixed intervals
of 1 year or less during the term of the account. You gen-
erally must include this interest in your income when you
actually receive it or are entitled to receive it without pay-
ing a substantial penalty. The same is true for accounts
that mature in 1 year or less and pay interest in a single
payment at maturity. If interest is deferred for more than 1
year, see Original Issue Discount (OID), later"
