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Obligations in Registered Form


An obligation is in registered form if the obligation meets one of the following requirements:

  • The obligation is registered (or a registration-required obligation) as to both principal and any stated interest with the issuer (or its agent) and any transfer of the obligation may be effected only by surrender of the old obligation and reissuance to the new holder
  • The right to principal and stated interest with respect to the obligation may be transferred only through a book entry system maintained by the issuer or its agent; or
  • The obligation is registered as to both principal and stated interest with the issuer or its agent and can be transferred both by surrender and reissuance and through a book entry system.


An obligation considered in registered form that can be transformed into an obligation not in registered form, will not be considered to be in registered form.

Citation: IRC § 871(h)(5). Tax on nonresident alien individuals IRC §163(f).  Interest. IRS Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities