Volume 65 · 27
Public Law 82–12
To authorize the payment of interest on series E savings bonds retained after maturity, and for other purposes.
Approved March 26, 1951
Statutory text
AN ACT
To authorize the payment of interest on series E savings bonds retained after maturity, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
That subsection (b) of section 22 of the Second Liberty Bond Act (31 U. S. C. 757c (b)) is amended by inserting “(1)” after “(b)” and adding the following new paragraph:
“(2) The Secretary of the Treasury, with the approval of the President, is authorized to provide by regulation that owners of series E savings bonds thereafter maturing may, at their option, retain the matured bonds and earn interest upon the maturity values thereof for not more than ten years at rates consistent with the provisions of paragraph (1).”
Sec 2.
Effective with respect to taxable years ending after the date
of the enactment of this Act, section 42 of the Internal Revenue Code is amended—
by inserting after “stated intervals” in the first sentence
Infra.
of subsection (b) the following: “or owning an obligation described in paragraph (2) of subsection (d)”;
by inserting after “acquisition” in the last sentence of subsection (b) the following:
“(or, in the case of an obligation described in paragraph (2) of subsection (d), the date of acquisition of the series E bond involved)”
; and
by adding at the end of such section the following new subsection:
“(d) Matured United States Savings Bonds.—
In the case of a taxpayer who—
(1) holds a series E United States savings bond at the date of maturity, and
(2) pursuant to regulations prescribed under the Second
Liberty Bond Act retains his investment in the maturity value of such series E bond in an obligation, other than a current income obligation, which matures not more than ten years from the date of maturity of such series E bond,
the increase in redemption value (to the extent not previously includible in gross income) in excess of the amount paid for such series E bond shall be includible in gross income in the taxable year in which the obligation is finally redeemed or in the taxable year of final maturity, whichever is earlier. The provisions of this subsection shall not apply to a corporation, and shall not apply in the case of any taxable year for which the taxpayer’s net income is computed upon the basis of the accrual method of accounting or for which an election made by the taxpayer under subsection (b) is applicable.”
Approved March 26, 1951.