(a) Interest subject to reporting requirement. For purposes of §§1.6049–4, 1.6049– 6 and this section, except as provided in paragraph (b) of this section, the term ‘‘interest’’ means: (a) General rule. Notwithstanding §1.6049–5(f), for a debt instrument acquired on or after January 1, 2014, if a broker (as defined in §1.6045–1(a)(1)) is required to file a statement for the debt instrument under §1.6049–6, the broker generally must report any bond premium (as defined in §1.171–1(d)) or acquisition premium (as defined in §1.1272–2(b)(3)) for the calendar year. This section, however, only applies to a debt instrument that is a covered security as defined in §1.6045–1(a)(15). (a) In general. For purposes of section 6049, a payor (as defined in §1.6049– 4(a)(2)) of original issue discount (OID) on a tax-exempt obligation (as defined in section 1288(b)(2)) is required to report the daily portions of OID on the obligation as if the daily portions of OID that accrued during a calendar year were paid to the holder (or holders) of the obligation in the calendar year. The amount of the daily portions of OID that accrues during a calendar year is determined as if section 1272 and §1.1272–1 applied to a tax-exempt obligation. Notwithstanding any other rule in section 6049 and the regulations
thereunder, a payor must determine whether a tax-exempt obligation was issued with OID and the amount of OID that accrues for each relevant period. As prescribed by section 1288(b)(1), OID on a tax-exempt obligation is determined without regard to the de minimis rules in section 1273(a)(3) and §1.1273–1(d).