§ 6049. Returns regarding payments of interest
(a)
Requirement of reporting
Every person—
(1)
who makes payments of interest (as defined in subsection (b)) aggregating $10 or more to any other person during any calendar year, or
(2)
who receives payments of interest (as so defined) as a nominee and who makes payments aggregating $10 or more during any calendar year to any other person with respect to the interest so received,
shall make a return according to the forms or regulations prescribed by the Secretary, setting forth the aggregate amount of such payments and the name and address of the person to whom paid.
(b)
Interest defined
(1)
General rule
For purposes of subsection (a), the term “interest” means—
(A)
interest on any obligation—
other than any obligation with a maturity (at issue) of not more than 1 year which is held by a corporation,
(C)
amounts (whether or not designated as interest) paid by a mutual savings bank, savings and loan association, building and loan association, cooperative bank, homestead association, credit union, industrial loan association or bank, or similar organization, in respect of deposits, investment certificates, or withdrawable or repurchasable shares,
(2)
Exceptions
For purposes of subsection (a), the term “interest” does not include—
(C)
except to the extent otherwise provided in regulations, any amount not described in subparagraph (B) of this paragraph which is income from sources outside the United States or which is paid by—
(3)
Payments by United States nominees, etc., of United States person
If, within the United States, a United States person—
(A)
collects interest (or otherwise acts as a middleman between the payor and payee) from a foreign person described in paragraph (2)(D) or collects interest from a United States person which is income from sources outside the United States for a second person who is a United States person, or
notwithstanding paragraph (2)(D), such payment shall be subject to the requirements of subsection (a) with respect to such second United States person.
(4)
Persons described in this paragraph
A person is described in this paragraph if such person is—
(D)
a State, the District of Columbia, a possession of the United States, any political subdivision of any of the foregoing, or any wholly owned agency or instrumentality of any one or more of the foregoing,
(E)
a foreign government, a political subdivision of a foreign government, or any wholly owned agency or instrumentality of any one or more of the foregoing,
(H)
a dealer in securities or commodities required to register as such under the laws of the United States or a State, the District of Columbia, or a possession of the United States,
(5)
Amounts described in this paragraph
An amount is described in this paragraph if such amount—
(A)
is subject to withholding under subchapter A of chapter 3 (relating to withholding of tax on nonresident aliens and foreign corporations) by the person paying such amount, or
(c)
Statements to be furnished to persons with respect to whom information is required
(1)
In general
Every person required to make a return under subsection (a) shall furnish to each person whose name is required to be set forth in such return a written statement showing—
(2)
Time and form of statement
The written statement under paragraph (1)—
(d)
Definitions and special rules
For purposes of this section—
(1)
Person
The term “person” includes any governmental unit and any agency or instrumentality thereof and any international organization and any agency or instrumentality thereof.
(2)
Obligation
The term “obligation” includes bonds, debentures, notes, certificates, and other evidences of indebtedness.
(3)
Payments by governmental units
In the case of payments made by any governmental unit or any agency or instrumentality thereof, the officer or employee having control of the payment of interest (or the person appropriately designated for purposes of this section) shall make the returns and statements required by this section.
(4)
Financial institutions, brokers, etc., collecting interest may be substituted for payor
To the extent and in the manner provided by regulations, in the case of any obligation—
(5)
Interest on certain obligations may be treated on a transactional basis
(A)
In general
To the extent and in the manner provided in regulations, this section shall apply with respect to—
on any transactional basis rather than on an annual aggregation basis.
(B)
Separate returns and statements
If subparagraph (A) applies to interest on any obligation, the return under subsection (a) and the statement furnished under subsection (c) with respect to such transaction may be made separately, but any such statement shall be furnished to the payee at such time as the Secretary may prescribe by regulations but not later than January 31 of the next calendar year.
(C)
Statement to payee required in case of transactions involving $10 or more
In the case of any transaction to which this paragraph applies which involves the payment of $10 or more of interest, a statement of the transaction may be provided to the payee of such interest in lieu of the statement required under subsection (c). Such statement shall be provided during January of the year following the year in which such payment is made.
(6)
Treatment of original issue discount
(A)
In general
Original issue discount on any obligation shall be reported—
(i)
as if paid at the time it is includible in gross income under section
1272 (except that for such purpose the amount reportable with respect to any subsequent holder shall be determined as if he were the original holder), and
In the case of any obligation not in registered form issued before January 1, 1983, clause (ii) and not clause (i) shall apply.
(7)
Interests in REMIC’s and certain other debt instruments
(B)
Reporting to corporations, etc.
Except as otherwise provided in regulations, in the case of any interest described in subparagraph (A) of this paragraph and any other debt instrument to which section
1272
(a)(6) applies, subsection (b)(4) of this section shall be applied without regard to subparagraphs (A), (H), (I), (J), (K), and (L)(i).
(C)
Additional information
Except as otherwise provided in regulations, any return or statement required to be filed or furnished under this section with respect to interest income described in subparagraph (A) and interest on any other debt instrument to which section
1272
(a)(6) applies shall also provide information setting forth the adjusted issue price of the interest to which the return or statement relates at the beginning of each accrual period with respect to which interest income is required to be reported on such return or statement and information necessary to compute accrual of market discount.
(8)
Reporting of credit on clean renewable energy bonds
(9)
Reporting of credit on qualified tax credit bonds