United States Treasury securities, often simply called Treasuries, are debt obligations issued by the U.S. Government and secured by the full faith and credit (the power to tax and borrow) of the United States.
Treasuries include: • Treasury bills, also called T-bills -- short-term obligations having maturities of one year or less; issued at a discount from their maturity value; • Treasury notes -- intermediate-term obligations with maturities of 1 to 10 years; • Treasury bonds -- long-term obligations with maturities of 10 years or more; and • U.S. savings bonds -- issued in smaller denominations than Treasury bonds and not traded on the secondary market like other Treasuries; issued either at a discount from maturity value (Series EE) or at face value with periodic interest (Series HH).
STRIPS (Separate Trading of Registered Interest and Principal of Securities) are created by the Treasury when it strips the coupons (interest) from Treasury bonds and sells the coupons and the principal separately, at a discount from face value.
Investment firms also strip Treasury bonds and market them under acronyms such as CATS (Certificates of Accrual on Treasury Securities) and TIGRS (Treasury Investors Growth Receipts). Though these strips represent ownership interests in Treasuries, the investment firm becomes the obligor for repayment, rather than the U.S. Treasury.
In Schedule A, write “U.S. Treasury securities” in Block A. In Block B, check the “None (or less than $1,001)” column, and in Block C check the “Interest” column and the column for the appropriate amount of interest produced during the reporting period. You do not need to list each security separately.
This guide is not intended to provide investment advice, and you should not rely on statements in this guide when making investment decisions.
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