26 U.S.C. § 4701. Tax on issuer of registration-required obligation not in registered form

1. (a)
   (a)

   Imposition of tax

   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)
      (a)(1)1 percent of the principal amount of such obligation, multiplied by
   2. (2)
      (a)(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.
2. (b)
   (b)

   Definitions

   For purposes of this section—

   1. (1)
      (b)(1)

      Registration-required obligation

      1. (A)
         (b)(1)(A)

         In general

         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—

         1. (i)
            (b)(1)(A)(i)is required to be registered under section 149(a), or
         2. (ii)
            (b)(1)(A)(ii)is described in subparagraph (B).
      2. (B)
         (b)(1)(B)

         Certain obligations not included

         An obligation is described in this subparagraph if—

         1. (i)
            (b)(1)(B)(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,
         2. (ii)
            (b)(1)(B)(ii)interest on such obligation is payable only outside the United States and its possessions, and
         3. (iii)
            (b)(1)(B)(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. (2)
      (b)(2)

      Registered form

      The term “registered form” has the same meaning as when used in section 163(f).