§ 4701. Tax on issuer of registration-required obligation not in registered form

• (a) In the case of any person who issues a registration-required obligation which is not in registered form, there is hereby imposed on such person on the issuance of such obligation a tax in an amount equal to the product of—
  • (1) 1 percent of the principal amount of such obligation, multiplied by
  • (2) the number of calendar years (or portions thereof) during the period beginning on the date of issuance of such obligation and ending on the date of maturity.
• (b) For purposes of this section—
  • (1)
    • (A) The term “registration-required obligation” has the same meaning as when used in section 163(f), except that such term shall not include any obligation which—
      • (i) is required to be registered under section 149(a), or
      • (ii) is described in subparagraph (B).
    • (B) An obligation is described in this subparagraph if—
      • (i) there are arrangements reasonably designed to ensure that such obligation will be sold (or resold in connection with the original issue) only to a person who is not a United States person,
      • (ii) interest on such obligation is payable only outside the United States and its possessions, and
      • (iii) on the face of such obligation there is a statement that any United States person who holds such obligation will be subject to limitations under the United States income tax laws.
  • (2) The term “registered form” has the same meaning as when used in section 163(f).