[Code of Federal Regulations]
[Title 26, Volume 11]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.1275-3]

[Page 552-553]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1--INCOME TAXES--Table of Contents
 
Sec. 1.1275-3  OID information reporting requirements.

    (a) In general. This section provides legending and information 
reporting requirements intended to facilitate the reporting of OID.
    (b) Information required to be set forth on face of debt instruments 
that are not publicly offered--(1) In general. Except as provided in 
paragraph (b)(4) or paragraph (d) of this section, this paragraph (b) 
applies to any debt instrument that is not publicly offered (within the 
meaning of Sec. 1.1275-1(h)), is issued in physical form, and has OID. 
The issuer of any such debt instrument must legend the instrument by 
stating on the face of the instrument that the debt instrument was 
issued with OID. In addition, the issuer must either--
    (i) Set forth on the face of the debt instrument the issue price, 
the amount of OID, the issue date, the yield to maturity, and, in the 
case of a debt instrument subject to the rules of Sec. 1.1275-4(b), the 
comparable yield and projected payment schedule; or
    (ii) Provide the name or title and either the address or telephone 
number of a representative of the issuer who will, beginning no later 
than 10 days after the issue date, promptly make available to holders 
upon request the information described in paragraph (b)(1)(i) of this 
section.
    (2) Time for legending. An issuer may satisfy the requirements of 
this paragraph (b) by legending the debt instrument when it is first 
issued in physical form. Legending is not required, however, before the 
first holder of the debt instrument disposes of the instrument.
    (3) Legend must survive reissuance upon transfer. Any new physical 
security that is issued (for example, upon registration of transfer of 
ownership) must contain any required legend.
    (4) Exceptions. Paragraph (b)(1) of this section does not apply to 
debt instruments described in section 1272(a)(2) (relating to debt 
instruments not subject to the periodic OID inclusion rules), debt 
instruments issued by natural persons (as defined in Sec. 1.6049-
4(f)(2)), REMIC regular interests or other debt instruments subject to 
section 1272(a)(6), or stripped bonds and coupons within the meaning of 
section 1286.
    (c) Information required to be reported to Secretary upon issuance 
of publicly offered debt instruments--(1) In general. Except as provided 
in paragraph (c)(3) or paragraph (d) of this section, the information 
reporting requirements of this paragraph (c) apply to any debt 
instrument that is publicly offered and has original issue discount. The 
issuer of any such debt instrument must make an information return on 
the form prescribed by the Commissioner (Form 8281, as of September 2, 
1992). The prescribed form must be filed with the Internal Revenue 
Service in the manner specified on the form. The taxpayer must use the 
prescribed form even if other information returns are filed using other 
methods (e.g., electronic media), unless the Commissioner announces 
otherwise in a revenue procedure.
    (2) Time for filing information return. The prescribed form must be 
filed for each issue of publicly offered debt instruments within 30 days 
after the issue date of the issue.

[[Page 553]]

    (3) Exceptions. The rules of paragraph (c)(1) of this section do not 
apply to debt instruments described in section 1272(a)(2), debt 
instruments issued by natural persons (as defined in Sec. 1.6049-
4(f)(2)), certificates of deposit, REMIC regular interests or other debt 
instruments subject to section 1272(a)(6), or (unless otherwise required 
by the Commissioner pursuant to a revenue ruling or revenue procedure) 
stripped bonds and coupons (within the meaning of section 1286).
    (d) Application to foreign issuers and U.S. issuers of foreign-
targeted debt instruments. A foreign or domestic issuer is subject to 
the rules of this section with respect to an issue of debt instruments 
unless the issue is not offered for sale or resale in the United States 
in connection with its original issuance.
    (e) Penalties. See section 6706 for rules relating to the penalty 
imposed for failure to meet the information reporting requirements 
imposed by this section.
    (f) Effective date. Paragraphs (c), (d), and (e) of this section are 
effective for an issue of debt instruments issued after September 2, 
1992.

[T.D. 8431, 57 FR 40322, Sept. 3, 1992; 57 FR 46243, Oct. 7, 1992, as 
amended by T.D. 8517, 59 FR 4827, Feb. 2, 1994; T.D. 8674, 61 FR 30143, 
June 14, 1996]