Reg. § 1.1275-3 OID information reporting requirements.
(a) In general This section provides legending and information reporting requirements intended to facilitate the reporting of OID.
(b) Information required to be set forth on face of debt instruments that are not publicly offered
(1) In general Except as provided in paragraph (b)(4) or of this section, this applies to any debt instrument that is not publicly offered (within the meaning of ), is issued in physical form, and has OID. The issuer of any such debt instrument must legend the instrument by stating on the face of the instrument that the debt instrument was issued with OID. In addition, the issuer must either—
(i) Set forth on the face of the debt instrument the issue price, the amount of OID, the issue date, the yield to maturity, and, in the case of a debt instrument subject to the rules of , the comparable yield and projected payment schedule; or
(ii) Provide the name or title and either the address or telephone number of a representative of the issuer who will, beginning no later than 10 days after the issue date, promptly make available to holders upon request the information described in of this section.
(2) Time for legending An issuer may satisfy the requirements of this by legending the debt instrument when it is first issued in physical form. Legending is not required, however, before the first holder of the debt instrument disposes of the instrument.
(3) Legend must survive reissuance upon transfer Any new physical security that is issued (for example, upon registration of transfer of ownership) must contain any required legend.
(4) Exceptions of this section does not apply to debt instruments described in section (relating to debt instruments not subject to the periodic OID inclusion rules), debt instruments issued by natural persons (as defined in ), REMIC regular interests or other debt instruments subject to section , or stripped bonds and coupons within the meaning of section .
(c) Information required to be reported to Secretary upon issuance of publicly offered debt instruments
(1) In general Except as provided in paragraph (c)(3) or of this section, the information reporting requirements of this apply to any debt instrument that is publicly offered and has original issue discount. The issuer of any such debt instrument must make an information return on the form prescribed by the Commissioner (Form 8281, as of September 2, 1992). The prescribed form must be filed with the Internal Revenue Service in the manner specified on the form. The taxpayer must use the prescribed form even if other information returns are filed using other methods (e.g., electronic media), unless the Commissioner announces otherwise in a revenue procedure.
(2) Time for filing information return The prescribed form must be filed for each issue of publicly offered debt instruments within 30 days after the issue date of the issue.
(3) Exceptions The rules of of this section do not apply to debt instruments described in section , debt instruments issued by natural persons (as defined in ), certificates of deposit, REMIC regular interests or other debt instruments subject to section , or (unless otherwise required by the Commissioner pursuant to a revenue ruling or revenue procedure) stripped bonds and coupons (within the meaning of section ).
(4) Subsequent registration Except as provided in or of this section, the information reporting requirements of of this section apply to any debt instrument that has original issue discount if the instrument is part of an issue the offering of which is registered with the Securities and Exchange Commission (SEC) after the issue date of the debt instrument. For example, this applies to a newly issued debt instrument (B bond) exchanged for an otherwise identical non-SEC-registered debt instrument (A bond) if the B bond is part of an issue the offering of which is registered with the SEC and the B bond has an issue date that is the same as the issue date of the A bond for federal tax purposes because the exchange is not a realization event under . If a debt instrument is subject to this , the prescribed form (Form 8281 or any successor) must be filed with the Internal Revenue Service within 30 days after the date the offering is registered with the SEC. This applies to a debt instrument that is part of an issue the offering of which is registered with the SEC on or after January 1, 2014.
(d) Application to foreign issuers and U.S. issuers of foreign-targeted debt instruments A foreign or domestic issuer is subject to the rules of this section with respect to an issue of debt instruments unless the issue is not offered for sale or resale in the United States in connection with its original issuance.
(e) Penalties See section for rules relating to the penalty imposed for failure to meet the information reporting requirements imposed by this section.
(f) Effective date , , and of this section are effective for an issue of debt instruments issued after September 2, 1992.
[T.D. 8431, 57 FR 40322, Sept. 3, 1992; 57 FR 46243, Oct. 7, 1992, as amended by T.D. 8517, 59 FR 4827, Feb. 2, 1994; T.D. 8674, 61 FR 30143, June 14, 1996; T.D. 9616, 78 FR 23126, Apr. 18, 2013]