Dear Sir,

Shareholders (* foreign corporations filed form 1120F )* give loan to US corporation.Promissory note stated interest plus principal due and payable on 12/31/2020 . Yearly interest at 5%.

Questions:
In US corporation book /BORROWER:
Interest on loan accrued yearly as* expense in Profit and Loss account.
Actual Interest is not yet paid but will be payable on 12/31/2020.
Does the US corporation need to issue form 1099 to Lender even though there is* no ACTUAL interest* paid.? Need to withhold tax ?

In Foreign corporation / Lender :
Is it correct t say that : no tax to be paid* on the loan interest revenue unless ACTUAL interest on loan is received 12/30/2020.

Appreciate your advice, thanks