Important
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For information call now:
(347) 989-4566
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Additional information
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Internal Revenue Service
Austin Service Center
ITIN Operation
P.O. Box 149342
Austin, TX 78714-9342
IN
1-800-829-1040
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Interest Income
Generally, U.S. source interest income includes the following items. � Interest
on bonds, notes, or other interest- bearing obligations of U.S. residents or
domestic corporations.
� Interest paid by a domestic or foreign partnership or foreign corporation
engaged in a U.S. trade or business at any time during the tax year.
� Original issue discount. � Interest from a state, the District of Columbia, or
the U.S. Government.
The place or manner of payment is immaterial in determining the source of the
income.
A substitute interest payment made to the transferor of a security in a
securities lending transaction or a sale-repurchase transaction is sourced in
the same manner as the interest on the transferred security
Exceptions. U.S. source interest income does not include the
following items.
1. Interest paid by a resident alien or a domestic corporation
if for the 3-year period ending with the close of the payer�s tax year preceding
the interest payment, at least 80% of the payer�s total gross income:
a. Is from sources outside the United States, and
b. Is attributable to the active conduct of a trade or business
by the individual or corporation in a foreign country or a U.S. possession.
2. Interest paid by a foreign branch of a domestic corporation
or a domestic partnership on deposits or withdrawable accounts with mutual
savings banks, cooperative banks, credit unions, domestic building and loan
associations, and other savings institutions chartered and supervised as savings
and loan or similar associations under federal or state law if the interest paid
or credited can be deducted by the association.
3. Interest on deposits with a foreign branch of a domestic
corporation or domestic partnership, but only if the branch is in the commercial
banking business.
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