See the paragraph below with respect to original issue discount (OID), which is treated as interest for federal tax purposes. 307 for information on backup withholding. You must give the payer of interest income your correct taxpayer identification number otherwise, you may be subject to a penalty and backup withholding. You must report all taxable and tax-exempt interest on your federal income tax return, even if you don't receive a Form 1099-INT or Form 1099-OID.
You may receive these forms as part of a composite statement from a broker. You should receive Copy B of Form 1099-INT or Form 1099-OID reporting payments of interest and/or tax-exempt interest of $10 or more. However, some interest you receive may be tax-exempt. Most interest that you receive or that is credited to an account that you can withdraw from without penalty is taxable income in the year it becomes available to you.
