[Code of Federal Regulations]
[Title 26, Volume 2]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.149(e)-1]
[Page 719-721]
TITLE 26--INTERNAL REVENUE
CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY
(CONTINUED)
PART 1--INCOME TAXES--Table of Contents
Sec. 1.149(e)-1 Information reporting requirements for tax-exempt bonds.
(a) General rule. Interest on a bond is included in gross income
unless certain information with respect to the issue of which the bond
is a part is reported to the Internal Revenue Service in accordance with
the requirements of this section. This section applies to any bond if
the issue of which the bond is a part is issued after December 31, 1986
(including any bond issued to refund a bond issued on or before December
31, 1986).
(b) Requirements for private activity bonds--(1) In general. If the
issue of which the bond is a part is an issue of private activity bonds,
the issuer must comply with the following requirements--
(i) Not later than the 15th day of the second calendar month after
the close of the calendar quarter in which the issue is issued, the
issuer must file with the Internal Revenue Service a completed
information reporting form prescribed for this purpose;
(ii) If any bond that is part of the issue is taken into account
under section 146 (relating to volume cap on private activity bonds),
the state certification requirement of paragraph (b)(2) of this section
must be satisfied; and
(iii) If any bond that is part of the issue is a qualified mortgage
bond or qualified veterans' mortgage bond (within the meaning of section
143 (a) or (b) or section 103A(c) (1) or (3) as in effect on the day
before enactment of the Tax Reform Act of 1986), the issuer must submit
the annual report containing information on the borrowers of the
original proceeds of the issue as required under Sec. 1.103A-2
(k)(2)(ii) and (k)(3) through (k)(6).
(2) State certification with respect to volume cap--(i) In general.
If an issue is subject to the volume cap under section 146, a state
official designated by state law (if there is no such official, then the
governor or the governor's delegate) must certify that the issue meets
the requirements of section 146, and a copy of this certification must
be attached to the information reporting form filed with respect to the
issue. In the case of any constitutional home rule city (as defined in
section 146(d)(3)(C)), the preceding sentence is applied by substituting
``city'' for ``state'' and ``chief executive officer'' for ``governor.''
(ii) Certification. The certifying official need not perform an
independent investigation in order to certify that the issue meets the
requirements of section 146. For example, if the certifying official
receives an affidavit that was executed by an officer of the issuer who
is responsible for issuing the bonds
[[Page 720]]
and that sets forth, in brief and summary terms, the facts necessary to
determine that the issue meets the requirements of section 146 and if
the certifying official has compared the information in that affidavit
to other readily available information with respect to that issuer
(e.g., previous affidavits and certifications for other private activity
bonds issued by that issuer), the certifying official may rely on the
affidavit.
(c) Requirements for governmental bonds--(1) Issue price of $100,000
or more. If the issue of which the bond is a part has an issue price of
$100,000 or more and is not an issue of private activity bonds, then,
not later than the 15th day of the second calendar month after the close
of the calendar quarter in which the issue is issued, the issuer must
file with the Internal Revenue Service a completed information reporting
form prescribed for this purpose.
(2) Issue price of less than $100,000--(i) In general. If the issue
of which the bond is a part has an issue price of less than $100,000 and
is not an issue of private activity bonds, the issuer must file with the
Internal Revenue Service one of the following information reporting
forms within the prescribed period--
(A) Separate return. Not later than the 15th day of the second
calendar month after the close of the calendar quarter in which the
issue is issued, a completed information reporting form prescribed for
this purpose with respect to that issue; or
(B) Consolidated return. Not later than February 15 of the calendar
year following the calendar year in which the issue is issued, a
completed information form prescribed for this purpose with respect to
all issues to which this paragraph (c)(2) applies that were issued by
the issuer during the calendar year and for which information was not
reported on a separate information return pursuant to paragraph
(c)(2)(i)(A) of this section.
(ii) Bond issues issued before January 1, 1992. Paragraph
(c)(2)(i)(A) of this section does not apply if the issue of which the
bond is a part is issued before January 1, 1992.
(iii) Extended filing date for first and second calendar quarters of
1992. If the issue of which the bond is a part is issued during the
first or second calendar quarter of 1992, the prescribed period for
filing an information reporting form with respect to that issue pursuant
to paragraph (c)(2)(i)(A) of this section is extended until November 16,
1992.
(d) Filing of forms and special rules--(1) Completed form. For
purposes of this section--
(i) Good faith effort. An information reporting form is treated as
completed if the issuer (or a person acting on behalf of the issuer) has
made a good faith effort to complete the form (taking into account the
instructions to the form).
(ii) Information. In general, information reporting forms filed
pursuant to this section must be completed on the basis of available
information and reasonable expectations as of the date the issue is
issued. Forms that are filed on a consolidated basis pursuant to
paragraph (c)(2)(i)(B) of this section, however, may be completed on the
basis of information readily available to the issuer at the close of the
calendar year to which the form relates, supplemented by estimates made
in good faith.
(iii) Certain information not required. An issuer need not report to
the Internal Revenue Service any information specified in the first
sentence of section 149(e)(2) that is not required to be reported to the
Internal Revenue Service pursuant to the information reporting forms
prescribed under that section and the instructions to those forms.
(2) Manner of filing--(i) Place for filing. The information
reporting form must be filed with the Internal Revenue Service at the
address specified on the form or in the instructions to the form.
(ii) Extension of time. The Commissioner may grant an extension of
time to file any form or attachment required under this section if the
Commissioner determines that the failure to file in a timely manner was
not due to willful neglect. The Commissioner may make this determination
with respect to an issue or to a class of issues.
(e) Definitions. For purposes of this section only--(1) Private
activity bond. The term ``private activity bond'' has the meaning given
that term in section
[[Page 721]]
141(a) of the Internal Revenue Code, except that the term does not
include any bond described in section 1312(c) of the Tax Reform Act of
1986 to which section 1312 or 1313 of the Tax Reform Act of 1986
applies.
(2) Issue--(i) In general. Except as otherwise provided in this
paragraph (e)(2), bonds are treated as part of the same issue only if
the bonds are issued--
(A) By the same issuer;
(B) On the same date; and
(C) Pursuant to a single transaction or to a series of related
transactions.
(ii) Draw-down loans, commercial paper, etc. (A) Bonds issued during
the same calendar year may be treated as part of the same tissue if the
bonds are issued--
(1) Pursuant to a loan agreement under which amounts are to be
advanced periodically (``draw-down loan''); or
(2) With a term not exceeding 270 days.
(B) In addition, the bonds must be equally and ratably secured under
a single indenture or loan agreement and issued pursuant to a common
financing arrangement (e.g., pursuant to the same official statement
that is periodically updated to reflect changing factual circumstances).
In the case of bonds issued pursuant to a draw-down loan that meets the
requirements of the preceding sentence, bonds issued during different
calendar years may be treated as part of the same issue if all the
amounts to be advanced pursuant to the draw-down loan are reasonably
expected to be advanced within three years of the date of issue of the
first bond.
(iii) Leases and installment sales. Bonds other than private
activity bonds may be treated as part of the same issue if--
(A) The bonds are issued pursuant to a single agreement that is in
the form of a lease or installment sales agreement; and
(B) All of the property covered by that agreement is reasonably
expected to be delivered within three years of the date of issue of the
first bond.
(iv) Qualified 501(c)(3) bonds. If an issuer elects under section
141(b)(9) to treat a portion of an issue as a qualified 501(c)(3) bond,
that portion is treated as a separate issue.
(3) Date of issue--(i) Bond. The date of issue of a bond is
determined under Sec. 1.150-1.
(ii) Issue. The date of issue of an issue of bonds is the date of
issue of the first bond that is part of the issue. See paragraphs (e)(2)
(ii) and (iii) of this section for rules relating to draw-down loans,
commercial paper, etc., and leases and installment sales.
(iii) Bonds to which prior law applied. Notwithstanding the
provisions of this paragraph (e)(3), an issue for which an information
report was required to be filed under section 103(l) or section
103A(j)(3) is treated as issued prior to January 1, 1987.
(4) Issue price. The term ``issue price'' has the same meaning given
the term under Sec. 1.148-1(b).
[T.D. 8425, 57 FR 36002, Aug. 12, 1992, as amended by T.D. 8425, 59 FR
24351, May 11, 1994]