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."
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)
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