Overview

Form 1099-OID is an IRS tax form that is used to report the OID (Original Issue Discount) on certain kinds of bond interest. This means that the bond was purchased for a lower price than it will be worth when it reaches maturity.

This form must be filed if the OID in gross income is a minimum of $10 and for any person for whom the payer has withheld and paid any foreign tax on OID. Also, this form may be filed under the backup withholding rules (irrespective of the total amount paid).

1099-OID automation with TaxBandits API

The TaxBandits API enables you to automate 1099-OID filing directly from your existing systems. Depending on how your platform manages recipient data, you can choose the approach that fits your workflow.

Automate end-to-end 1099-OID cycle

Collect W-9/W-8 forms from recipients, validate their TINs against the IRS database, and file 1099-OID forms at year-end.

Best for: Online brokerage and fixed income investment platforms, bank and fintech CD issuance platforms, robo-advisor bond portfolio platforms, and WHFIT/WHMT trust administration systems that onboard new account holders or debt instrument investors, collect and validate TINs, track OID accrual as it occurs throughout the year, and generate and e-file 1099-OIDs at year-end.

Create and file 1099-OID directly.

If you already have recipient data and annual payment totals in your system, use the API endpoints to create and transmit 1099-OID forms directly.

Best for: Institutional brokerage and clearing firm back-office systems, corporate and municipal bond issuer debt management platforms, nominee and paying agent systems, REMIC/FASIT/CDO structured finance administration platforms, and tax preparation software serving fixed income clients.

Supported tax years

TaxBandits API supports e-filing of Form 1099-OID for the following tax years:

Tax Year	API Version
2026	v2.0.0
2025	v2.0.0, v1.7.3
2024	v1.7.3

Services available

The TaxBandits API supports the following services for Form 1099-OID:

• Federal & State Filing - File 1099-OID returns with the IRS and the required state agencies.
• State-Only Filing - File 1099-OID only with the state agencies when the federal return has already been submitted.
• Postal Mailing - TaxBandits prints and mails the recipient copy on your behalf.
• Online Access - Share a digital copy of the 1099-OID with recipients through a secure, branded online portal. Recipients are notified via email and can view, download, and consent to paperless delivery.
• Corrections - File corrections for 1099-OID forms that are already accepted by the IRS (even if original returns filed elsewhere).

1099-OID endpoints

All endpoints require a Bearer token obtained through the OAuth 2.0 authentication flow. Include this token in the Authorization header of every request. Learn more about OAuth 2.0

• Create - Create one or more 1099-OID records in a single submission.
• Update - Modify an existing 1099-OID submission before it has been transmitted to the IRS.
• ValidateForm - Validate 1099-OID field-level specifications against the IRS business rules before creating the form.
• Get - Retrieve payer, recipient, and form data for a specific 1099-OID submission by SubmissionId.

1099 utility endpoints

The following endpoints are shared across all 1099 form types.

• List - List all 1099-OID records for a submission or payer.
• Status - Retrieve the status of the Forms 1099-OID submitted to the IRS and/or states.
• Transmit - Transmit the created return to the IRS.
• StatusLog - Retrieved the status change of the transmitted return.
• RequestDraftPdfUrl - Returns a draft PDF URL for review. These forms are not for filing and will have a watermark "For Review only" on them.
• RequestPdfURLs - Retrieve final PDF URLs for one or more recipients after transmission.
• Delete - Delete the returns created before transmitting.

As an alternative to the Status endpoint, you can configure webhooks to receive automated status updates Learn more