§ 4701. Tax on issuer of registration-required obligation not in registered form

Statutory text

Imposition of tax

In the case of any person who issues a registration-required obligation which is not in registered form, there is hereby imposed on such person on the issuance of such obligation a tax in an amount equal to the product of—

1 percent of the principal amount of such obligation, multiplied by

the number of calendar years (or portions thereof) during the period beginning on the date of issuance of such obligation and ending on the date of maturity.

Definitions

For purposes of this section—

Registration-required obligation

In general

The term “registration-required obligation” has the same meaning as when used in section 163(f), except that such term shall not include any obligation which—

is required to be registered under section 149(a), or

is described in subparagraph (B).

Certain obligations not included

An obligation is described in this subparagraph if—

there are arrangements reasonably designed to ensure that such obligation will be sold (or resold in connection with the original issue) only to a person who is not a United States person,

interest on such obligation is payable only outside the United States and its possessions, and

on the face of such obligation there is a statement that any United States person who holds such obligation will be subject to limitations under the United States income tax laws.

Registered form

The term “registered form” has the same meaning as when used in section 163(f).

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1982
Pub. L. 97–248 title III § 310(b)(4)(A) · 96 Stat. 324
Enacted · 26 U.S.C. § 4701
Added Pub. L. 97–248, title III, § 310(b)(4)(A), Sept. 3, 1982, 96 Stat. 598
Source evidence
Code source credit
Added Pub. L. 97–248, title III, § 310(b)(4)(A), Sept. 3, 1982, 96 Stat. 598
Enacted provision · exact public law section
(A) In general.— Subtitle D (relating to miscellaneous excise taxes) is amended by adding after chapter 38 the following new chapter:
1986
Tax Reform Act of 1986
Pub. L. 99–514 title XIII § 1301(j)(5) · 100 Stat. 2085
Substituted · 26 U.S.C. § 4701(b)(1)
Pub. L. 99–514 substituted “section 149(a)” for “section 103(j)”
Source evidence
Code amendment note
Subsec. (b)(1). Pub. L. 99–514 substituted “section 149(a)” for “section 103(j)”.
Enacted provision · exact public law section
(5) Paragraph (1) of section 4701(b) (defining registration-required obligation) is amended by striking out “section 103(j)” and inserting in lieu thereof “section 149(a)”.
2010
Hiring Incentives to Restore Employment Act
Pub. L. 111–147 title V § 502(e) · 124 Stat. 71
Amended · 26 U.S.C. § 4701(b)(1)
Pub. L. 111–147 amended par. (1) generally. Prior to amendment, text read as follows: “The term ‘registration-required obligation’ has the same meaning as when used in section 163(f), except that such term shall not include any obligation required to be registered under section 149(a).”
Source evidence
Code amendment note
Subsec. (b)(1). Pub. L. 111–147 amended par. (1) generally. Prior to amendment, text read as follows: “The term ‘registration-required obligation’ has the same meaning as when used in section 163(f), except that such term shall not include any obligation required to be registered under section 149(a).”
Enacted provision · exact public law section
(e) Preservation of Exception for Excise Tax Purposes.— Paragraph (1) of section 4701(b) 26 USC 4701. is amended to read as follows: “(1) Registration-required obligation.— “(A) In general.— The term ‘registration-required obligation’ has the same meaning as when used in section 163(f), except that such term shall not include any obligation which— “(i) is required to be registered under section 149(a), or “(ii) is described in subparagraph (B). “(B) Certain obligations not included.— An obligation is described in this subparagraph if— “(i) there are arrangements reasonably designed to ensure that such obligation will be sold (or resold in connection with the original issue) only to a person who is not a United States person, “(ii) interest on such obligation is payable only outside the United States and its possessions, and “(iii) on the face of such obligation there is a statement that any United States person who holds such obligation will be subject to limitations under the United States income tax laws.” .
Effective date note
Amendment by Pub. L. 111–147 applicable to obligations issued after the date which is 2 years after Mar. 18, 2010, see section 502(f) of Pub. L. 111–147, set out as a note under section 149 of this title.

3 of 3 references resolved to an enrolled provision

Editorial Notes

Amendments1986–2010 · 2 rounds

2010

Subsec. (b)(1). Pub. L. 111–147 amended par. (1) generally. Prior to amendment, text read as follows: “The term ‘registration-required obligation’ has the same meaning as when used in section 163(f), except that such term shall not include any obligation required to be registered under section 149(a).”

1986

Subsec. (b)(1). Pub. L. 99–514 substituted “section 149(a)” for “section 103(j)”.

Statutory Notes and Related Subsidiaries

Effective Date of 2010 Amendment

Amendment by Pub. L. 111–147 applicable to obligations issued after the date which is 2 years after Mar. 18, 2010, see section 502(f) of Pub. L. 111–147, set out as a note under section 149 of this title.

Effective Date of 1986 Amendment

Amendment by Pub. L. 99–514 applicable to bonds issued after Aug. 15, 1986, except as otherwise provided, see sections 1311 to 1318 of Pub. L. 99–514, set out as an Effective Date; Transitional Rules note under section 141 of this title.

Effective Date

Section applicable to obligations issued after Dec. 31, 1982, with an exception for certain warrants, see section 310(d)(1), (3) of Pub. L. 97–248, set out as an Effective Date of 1982 Amendment note under section 103 of this title.

Credits

1982–2010 · 3 acts

1982Added Pub. L. 97–248, title III, § 310(b)(4)(A), Sept. 3, 1982, 96 Stat. 598
1986amended Pub. L. 99–514, title XIII, § 1301(j)(5), Oct. 22, 1986, 100 Stat. 2657
2010Pub. L. 111–147, title V, § 502(e), Mar. 18, 2010, 124 Stat. 108.

Show as published

(Added Pub. L. 97–248, title III, § 310(b)(4)(A), Sept. 3, 1982, 96 Stat. 598; amended Pub. L. 99–514, title XIII, § 1301(j)(5), Oct. 22, 1986, 100 Stat. 2657; Pub. L. 111–147, title V, § 502(e), Mar. 18, 2010, 124 Stat. 108.)