Definition:
A Registration-Required Obligation is any obligation (including any obligation issued by a governmental entity) that meets the following requirements:
- The obligation must not be issued by a natural person (i.e., a human)
- The obligation is of a type offered to the public. This will not apply if the obligation is deemed in the regulations by the Secretary to be used frequently in avoiding taxes or if the obligation is issued after the date on which the regulations take effect.
- The obligation has a maturity (at issue) of more than 1 year. This will not apply if the obligation is deemed in the regulations by the Secretary to be used frequently in avoiding taxes or if the obligation is issued after the date on which the regulations take effect.
Book entry systems are permitted, except that a dematerialized book entry system or other book entry system specified by the Secretary shall be treated as a book entry system.
Citation: IRC §163(f). Interest.