The Internal Revenue Service needs the information in order to ensure that purchasers of bearer obligations are not U.S. persons (other than those permitted to hold obligations under section 165(j)) and to ensure that U.S. persons holding bearer obligations properly report income and gain on such obligations. The people reporting will be institutions holding bearer obligations.
US Code:
26 USC 163(j)
Name of Law: Limitation on deduction for interest on certain indebtedness
US Code:
26 USC 165(j)
Name of Law: Denial of deduction for losses on certain obligations not in registered form
US Code:
26 USC 1287(a)
Name of Law: Denial of capital gain treatment for gains on certain obligations not in registered form
US Code:
26 USC 6103
Name of Law: Confidentiality and Disclosure of Returns and Return Information
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
Final_INTL-50-86.pdf
INTL-50-86_ Sup_Stmnt.doc
INTL-50-86 (Final)(TD 8110) Sanctions on Issuers and Holders of Registration-Required Obligations Not in Registered Form.