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Form 8281 (Rev. 9-2014)

Page

Box 7. Check the appropriate box for type of instrument.

Box 15. You must attach two copies of the schedule of OID per

$1,000 principal amount for the life of the instrument. However,

• A fixed rate debt instrument (including a zero coupon debt

if the principal amount is other than $1,000, indicate the actual

instrument),

OID per principal amount per year and specify the actual

• A variable rate debt instrument,

principal amount. The schedule must be based on a 6-month

accrual period. It must show the daily portion of OID for each

• A contingent payment debt instrument, or

accrual period and the total OID for each calendar year. Also, if

• An inflation-indexed debt instrument.

you checked box 9b (Variable) or box 9c (Contingent), explain

Box 8. Enter the issue price as a percentage of the principal

how the interest rate will be determined.

amount. For example, XYZ bonds were first offered to the public

To compute the OID allocable to a short accrual period for a

at $900 with a principal amount of $1,000. The issue price of

debt instrument, you may use any reasonable method. Indicate

$900 expressed as a percentage of principal is 90. If the

what method you used.

percentage is 100 or more, explain in box 14.

If the instrument is part of an investment unit or exchange

Paperwork Reduction Act Notice. We ask for the information

offering, attach a description of the method used to determine

on this form to carry out the Internal Revenue laws of the United

the issue price.

States. You are required to give us the information. We need it

to ensure that you are complying with these laws and to allow

Box 9. Enter the annual stated interest rate or coupon rate. If

us to figure and collect the right amount of tax.

zero, enter “0.” If the interest rate is variable or contingent,

check the appropriate box and explain in box 15 how the rate

You are not required to provide the information requested on

will be determined.

a form that is subject to the Paperwork Reduction Act unless

the form displays a valid OMB control number. Books or

Box 10. Enter the interest payment dates. Attach additional

records relating to a form or its instructions must be retained as

information as necessary.

long as their contents may become material in the

Box 11. Enter the amount of OID for the entire issue. For

administration of any Internal Revenue law. Generally, tax

example, if the issue price for the entire issue totals $890,000,

returns and return information are confidential, as required by

and the stated redemption price at maturity totals $1 million, the

section 6103.

OID for the entire issue is $110,000.

The time needed to complete and file this form will vary

Box 12. Enter the yield to maturity as a percentage rounded to

depending on individual circumstances. The estimated average

two decimal points. For example, if the yield to maturity is

time is:

9.5784%, enter 9.58%. The yield to maturity should be based

Recordkeeping

. 5 hr., 15 min.

on semiannual compounding. If the debt instrument is a variable

rate debt instrument, enter the yield to maturity of the equivalent

Learning about the

fixed rate debt instrument. If the debt instrument is a contingent

law or the form

. 30 min.

payment debt instrument, enter the comparable yield.

Preparing, copying,

Box 14. Provide a complete description of the instrument,

assembling, and

including any terms and conditions (for example, put or call

sending the form to the IRS

. 37 min.

options) that could affect the stated payment schedule of the

If you have comments concerning the accuracy of these time

instrument. For a contingent payment debt instrument, provide

estimates or suggestions for making this form simpler, we would

the projected payment schedule. In addition, indicate whether

be happy to hear from you. You can send us comments from

the instrument is:

Click on “More Information” and then

• Part of an investment unit,

on “Give us feedback.” Or you can write to Internal Revenue

Service, Tax Forms and Publications Division,

• Issued in an exchange offering described in section 368(a), or

SE:W:CAR:MP:TFP, 1111 Constitution Ave., NW, IR-6526,

• Part of a serial issue.

Washington, DC 20224. Do not send this form to this address.

Instead, send Form 8281 to the address shown on the form.

You may provide two copies of the prospectus or offering

circular instead of the required description.

Form 8281 - Information Return For Publicly Offered Original Issue Discount Instruments Page 4

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