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Publication 510

Chapter 9
Obligations Not
in Registered Form(p38)

Tax is imposed on any person who issues a registration-required obligation not in registered form. The tax is:
A registration-required obligation is any obligation other than one that meets any of the following conditions.
  1. It is issued by a natural person.
  2. It is not of a type offered to the public.
  3. It has a maturity (at issue) of not more than 1 year.
  4. It can only be issued to a foreign person.
For item (4), if the obligation is not in registered form, the interest on the obligation must be payable only outside the United States and its possessions. Also, the obligation must state on its face that any U.S. person who holds it shall be subject to limits under the U.S. income tax laws.