Does anyone know how you report the accrued interest at year end on certificate of deposits if they are for more than one year. i.e, 18 month certificate or even a 60 month certificate that does not post quarterly or annually but keeps accruing until maturity.

We have some that we have obtained through a purchase. If I remember correctly, the accrued interest has to be reported in the year it was earned, but I do not know where to look to confirm this. Any ideas?

thanks for your help

Requests and opinions are mine not my employer

You will need to file a 1099OID on these accounts. You can refer to the IRS Website and find the rules.

Found it! That is what I needed! Thanks so much!!!

Requests and Opinions are mine not my employer

We had problems with customers understanding 1099OIDs, so we now require an interest payment at least annually.