26 U.S.C. § 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— (i) issued in registered form, or (ii) of a type offered to the public, other than any obligation with a maturity (at issue) of not more than 1 year which is held by a corporation, (B) interest on deposits with persons carrying on the banking business, (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, (D) interest on amounts held by an insurance company under an agreement to pay interest thereon, (E) interest on deposits with brokers (as defined in section 6045(c)), (F) interest paid on amounts held by investment companies (as defined in section 3 of the Investment Company Act of 1940 ([15 U.S.C. 80a–3](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section80a–3&num=0&edition=prelim))) and on amounts invested in other pooled funds or trusts, and (G) to the extent provided in regulations prescribed by the Secretary, any other interest (which is not described in paragraph (2)). (2) **Exceptions** — For purposes of subsection (a), the term “interest” does not include— (A) interest on any obligation issued by a natural person, (B) except to the extent otherwise provided in regulations— (i) any amount paid to any person described in paragraph (4), or (ii) any amount described in paragraph (5), and (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— (i) a foreign government or international organization or any agency or instrumentality thereof, (ii) a foreign central bank of issue, (iii) a foreign corporation not engaged in a trade or business in the United States, (iv) a foreign corporation, the interest payments of which would be exempt from withholding under subchapter A of chapter 3 if paid to a person who is not a United States person, or (v) a partnership not engaged in a trade or business in the United States and composed in whole of nonresident alien individuals and persons described in clause (i), (ii), or (iii). (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 (B) makes payments of such interest to such second United States person, 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— (A) a corporation, (B) an organization exempt from taxation under section 501(a) or an individual retirement plan, (C) the United States or any wholly owned agency or instrumentality thereof, (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, (F) an international organization or any wholly owned agency or instrumentality thereof, (G) a foreign central bank of issue, (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, (I) a real estate investment trust (as defined in section 856), (J) an entity registered at all times during the taxable year under the Investment Company Act of 1940, (K) a common trust fund (as defined in section 584(a)), or (L) any trust which— (i) is exempt from tax under section 664(c), or (ii) is described in section 4947(a)(1). (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 (B) would be subject to withholding under subchapter A of chapter 3 by the person paying such amount but for the fact that— (i) such amount is income from sources outside the United States, (ii) the payor thereof is exempt from the application of section 1441(a) by reason of section 1441(c) or a tax treaty, (iii) such amount is original issue discount (within the meaning of section 1273(a)), or (iv) such amount is described in section 871(i)(2). **(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— (A) the name, address, and phone number of the information contact of the person required to make such return, and (B) the aggregate amount of payments to, or the aggregate amount includible in the gross income of, the person required to be shown on the return. (2) **Time and form of statement** — The written statement under paragraph (1)— (A) shall be furnished (either in person or in a statement mailing by first-class mail which includes adequate notice that the statement is enclosed) to the person on or before January 31 of the year following the calendar year for which the return under subsection (a) was required to be made, and (B) shall be in such form as the Secretary may prescribe by regulations. **(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— (A) a financial institution, broker, or other person specified in such regulations which collects interest on such obligation for the payee (or otherwise acts as a middleman between the payor and the payee) shall comply with the requirements of subsections (a) and (c), and (B) no other person shall be required to comply with the requirements of subsections (a) and (c) with respect to any interest on such obligation for which reporting is required pursuant to subparagraph (A). (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— (i) any person described in paragraph (4)(A), and (ii) in the case of any United States savings bonds, any Federal agency making payments thereon, 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 (ii) if section 1272 does not apply to the obligation, at maturity (or, if earlier, on redemption). In the case of any obligation not in registered form issued before January 1, 1983, clause (ii) and not clause (i) shall apply. (B) *Original issue discount* — For purposes of this paragraph, the term “original issue discount” has the meaning given to such term by section 1273(a). (7) **Interests in REMIC’s and certain other debt instruments** (A) *In general* — For purposes of subsection (a), the term “interest” includes amounts includible in gross income with respect to regular interests in REMIC’s (and such amounts shall be treated as paid when includible in gross income under section 860B(b)). (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. (D) *Regulatory authority* — The Secretary may prescribe such regulations as are necessary or appropriate to carry out the purposes of this paragraph, including regulations which require more frequent or more detailed reporting. (8) **Reporting of credit on clean renewable energy bonds** (A) *In general* — For purposes of subsection (a), the term “interest” includes amounts includible in gross income under section 54(g) 11 See References in Text note below. and such amounts shall be treated as paid on the credit allowance date (as defined in section 54(b)(4)).1 (B) *Reporting to corporations, etc.* — Except as otherwise provided in regulations, in the case of any interest described in subparagraph (A), subsection (b)(4) shall be applied without regard to subparagraphs (A), (H), (I), (J), (K), and (L)(i) of such subsection. (C) *Regulatory authority* — The Secretary may prescribe such regulations as are necessary or appropriate to carry out the purposes of this paragraph, including regulations which require more frequent or more detailed reporting. (9) **Reporting of credit on qualified tax credit bonds** (A) *In general* — For purposes of subsection (a), the term “interest” includes amounts includible in gross income under section 54A 1 and such amounts shall be treated as paid on the credit allowance date (as defined in section 54A(e)(1)).1 (B) *Reporting to corporations, etc.* — Except as otherwise provided in regulations, in the case of any interest described in subparagraph (A) of this paragraph, subsection (b)(4) of this section shall be applied without regard to subparagraphs (A), (H), (I), (J), (K), and (L)(i). (C) *Regulatory authority* — The Secretary may prescribe such regulations as are necessary or appropriate to carry out the purposes of this paragraph, including regulations which require more frequent or more detailed reporting.