The amount subject to backup withholding at maturity of a listed obligation must be determined using the issue price shown in Section I. Long-term bearer obligations with cash payments. If a long-term bearer obligation has cash payments before maturity, backup withholding applies when the cash payments are made. For a payment at maturity, the amount subject to withholding is only the total of any qualified stated interest paid at maturity and the OID includible in the owner's gross income for the calendar year when the obligation matures. The required withholding at maturity is limited to the cash paid. Sales and redemptions.
Backup withholding applies in the following situations.
For debt instruments held in an account opened after 1983, the payee does not certify, under penalties of perjury, that the TIN given is correct. Payments outside the United States to U.S. person. Payments to foreign person. The following discussions explain the rules for backup withholding and information reporting on payments to foreign persons. A U.S. resident is not a foreign person.