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Form 8281 (Rev. 10-2010)

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.

A fixed rate debt instrument (including a zero coupon debt

However, if the principal amount is other than $1,000,

instrument),

indicate the actual OID per principal amount per year and

A variable rate debt instrument,

specify the actual principal amount. The schedule must be

based on a 6-month accrual period. It must show the daily

A contingent payment debt instrument, or

portion of OID for each accrual period and the total OID for

An inflation-indexed debt instrument.

each calendar year. Also, if you checked box 9b (Variable) or

box 9c (Contingent), explain how the interest rate will be

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

determined.

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

To compute the OID allocable to a short accrual period for

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

a debt instrument, you may use any reasonable method.

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

Indicate what method you used.

the 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

offering, attach a description of the method used to

information on this form to carry out the Internal Revenue

determine the issue price.

laws of the United States. You are required to give us the

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

information. We need it to ensure that you are complying

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

with these laws and to allow us to figure and collect the right

check the appropriate box and explain in box 15 how the

amount of tax.

rate will be determined.

You are not required to provide the information requested

on a form that is subject to the Paperwork Reduction Act

Box 10. Enter the interest payment dates. Attach additional

unless the form displays a valid OMB control number. Books

information as necessary.

or records relating to a form or its instructions must be

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

retained as long as their contents may become material in

example, if the issue price for the entire issue totals

the administration of any Internal Revenue law. Generally, tax

$890,000, and the stated redemption price at maturity totals

returns and return information are confidential, as required by

$1 million, the OID for the entire issue is $110,000.

section 6103.

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

The time needed to complete and file this form will vary

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

depending on individual circumstances. The estimated

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

average time is:

based on semiannual compounding. If the debt instrument is

Recordkeeping

5 hr., 1 min.

a variable rate debt instrument, enter the yield to maturity of

the equivalent fixed rate debt instrument. If the debt

Learning about the

instrument is a contingent payment debt instrument, enter

law or the form

30 min.

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

instrument. For a contingent payment debt instrument,

time estimates or suggestions for making this form simpler,

provide the projected payment schedule. In addition, indicate

we would be happy to hear from you. You can write to the

whether the instrument is:

Internal Revenue Service, Tax Products Coordinating

Part of an investment unit,

Committee, SE:W:CAR:MP:T:T:SP, 1111 Constitution Avenue,

NW, IR-6526, Washington, DC 20224. Do not send this form

Issued in an exchange offering described in section

to this address. Instead, send Form 8281 to the address

368(a), or

shown on the form.

Part of a serial issue.

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 3

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