# 26 U.S.C. § 4701: Tax on issuer of registration-required obligation not in registered form

Source: OLRC release point 119-134 <https://uscode.house.gov/us/usc/119-134/t26/s4701>. Cite pinpoints as 26 U.S.C. § 4701(a)(1).

## § 4701(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—

**§ 4701(a)(1)** 1 percent of the principal amount of such obligation, multiplied by

**§ 4701(a)(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.

## § 4701(b) Definitions

For purposes of this section—

**§ 4701(b)(1) Registration-required obligation.**

**§ 4701(b)(1)(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—

**§ 4701(b)(1)(A)(i)** is required to be registered under section 149(a), or

**§ 4701(b)(1)(A)(ii)** is described in subparagraph (B).

**§ 4701(b)(1)(B) Certain obligations not included.** An obligation is described in this subparagraph if—

**§ 4701(b)(1)(B)(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,

**§ 4701(b)(1)(B)(ii)** interest on such obligation is payable only outside the United States and its possessions, and

**§ 4701(b)(1)(B)(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.

**§ 4701(b)(2) Registered form.** The term “registered form” has the same meaning as when used in section 163(f).

## Regulations

- [Treas. Reg. § 46.4701-1](/26/reg/46.4701-1.md): Tax on issuer of registration-required obligation not in registered form. (interprets § 4701)

## Proposed regulations (not in force)

- [Prop. Treas. Reg. § 46.4701-1](/26/prop/46.4701-1_2017-19753.md): Tax on issuer of registration-required obligation not in registered form. (REG-125374-16, proposed 2017-09-19)

## Connections

Cites: § 149 Bonds must be registered to be tax exempt; other requirements; § 163 Interest

Cited by: § 165 Losses; § 1287 Denial of capital gain treatment for gains on certain obligations not in registered form

## Amendments

- 1982-09-03: [Pub. L. 97-248](/26/act/97-248.md), 96 Stat. 598
- 1986-10-22: [Pub. L. 99-514](/26/act/99-514.md), 100 Stat. 2657
- 2010-03-18: [Pub. L. 111-147](/26/act/111-147.md), 124 Stat. 108