NODE 5303714dRe: e$
frissell@panix.com (Duncan Frissell)Wed, 10 Aug 94 11:10:18 PDT
At 01:51 PM 8/9/94 -0400, Perry E. Metzger wrote:
>
>> > Yes it does. Bearer bonds are illegal in the US.
>If the check is written to "cash" and is used to avoid federal
>transfer reporting requirements, it is CURRENTLY illegal. I suspect
>that checks made out to "cash" would be illegal in all cases if they
>were widely used to avoid reporting requirements.
>
>Perry
>
Bearer bonds are not illegal in the US.
Under the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), any
interest payments made on *new* issues of domestic bearer bonds are not
deductible as an ordinary and necessary business expense so none have been
issued since then. At the same time, the Feds administratively stopped
issuing treasury securities in bearer form. Old issues of government and
corporate debt in bearer form still exist and will exist and trade for 30 or
more years after 1982. Additionally, US residents can legally buy foreign
bearer securities.
DCF
"Who promises the Black Caucus that if they will help kill the Crime Bill,
he will support affirmative action in executions -- starting with the White
Guys responsible for the Waco Massacre."
NODE 3e1e868fRe: e$
prig0011@gold.tc.umn.eduWed, 10 Aug 94 12:11:54 PDT
According to legend, Duncan Frissell said:
>
> Bearer bonds are not illegal in the US.
>
> Under the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), any
> interest payments made on *new* issues of domestic bearer bonds are not
> deductible as an ordinary and necessary business expense so none have been
> issued since then. At the same time, the Feds administratively stopped
> issuing treasury securities in bearer form. Old issues of government and
> corporate debt in bearer form still exist and will exist and trade for 30 or
> more years after 1982. Additionally, US residents can legally buy foreign
> bearer securities.
The last US Bearer Bond issues mature in 1997. I also believe that to
collect interest, and to redeem the bond at maturity, you must give your
name and tax-id number to the paying agent. (I can check with the
department here that handles it if anyone is interested in the pertinent
OCC regs that apply)