Page:United States Statutes at Large Volume 96 Part 1.djvu/640

 96 STAT. 598 26 USC 4701.

PUBLIC LAW 97-248—SEPT. 3, 1982 "SEC. 4701. TAX ON ISSUER OF REGISTRATION-REQUIRED OBLIGATION NOT IN REGISTERED FORM.

"(a) 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) 1 percent of the principal amount of such obligation, multiplied by "(2) 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. "(b) DEFINITIONS.—For purposes of this section— "(1) REGISTRATION-REQUIRED OBLIGATION.—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 103(j). "(2) REGISTERED FORM.—The term 'registered form' has the same meaning as when used in section 163(f)." (B) CONFORMING AMENDMENT.—The table of chapters for subtitle D is amended by inserting after chapter 38 the following: "CHAPTER 39. Registration-required obligations." (5) DENIAL OF DEDUCTION FOR LOSSES ON CERTAIN OBLIGATIONS

Ante, p. 422.

NOT IN REGISTERED FORM.—Section 165 (as amended by this Act) is amended by redesignating subsection (j) as subsection (k) and by inserting after subsection (i) the following new subsection: "(j) DENIAL OF DEDUCTION FOR LOSSES ON CERTAIN OBLIGATIONS NOT IN REGISTERED FORM.—

"(1) IN GENERAL.—Nothing in subsection (a) or in any other provision of law shall be construed to provide a deduction for any loss sustained on any registration-required obligation unless such obligation is in registered form (or the issuance of such obligation was subject to tax under section 4701). "(2) DEFINITIONS.—For purposes of this subsection— "(A) REGISTRATION-REQUIRED OBLIGATION.—The term 'registration-required obligation' has the meaning given to such term by section 163(0(2) except that clause (iv) of subparagraph (A), and subparagraph (B), of such section shall not apply. "(B) REGISTERED FORM.—The term 'registered form' has the same meaning as when used in section 163(0. "(3) EXCEPTIONS.—The Secretary may, by regulations, provide that this subsection and subsection (d) of section 1232 shall not apply with respect to obligations held by any person if— "(A) such person holds such obligations in connection with a trade or business outside the United States, "(B) such person holds such obligations as a broker dealer (registered under Federal or State law) for sale to customers in the ordinary course of his trade or business, "(C) such person complies with reporting requirements with respect to ownership, transfers, and payments as the Secretary may require, or "(D) such person promptly surrenders the obligation to the issuer for the issuance of a new obligation in registered form.

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