Does 1099-INT or 1099-OID contain interest earned (already paid) or interest accrued (yet to be paid) for certificate of deposit type of bank accounts? Are we supposed to pay taxes to IRS on interest earned (paid) or accrued? Is this true even with foreign (non-U.S. bank) accounts?

Interest on Original Issue Discount (OID) bonds is taxable as it accrues, even though you don't receive an actual interest payment until you sell the bond or it matures. US issuers of OID bonds shoud progvide you with a 1099-OID to document the taxable accrued interest. Be sure to add these accruals to your cost basis, so that when the bond sells you don't get hit with capital gains tax on top of the taxable interest you've already paid. For foreign bonds I doubt that you will receive a 1099-OID, so you should try to determine the correct amount from account statements. If you pay taxes on these investment in the foreign country don't forget to take the foreign tax credit.

Interest reported on a 1099-INT is interest actually paid, and generally does not include any interest accrued.