If a Taxpayer Holding EE Bonds Makes an Election with Respect

question 81

Essay

If a taxpayer holding EE bonds makes an election with respect to the taxation of the bonds, how is the interest which accrues on the bonds, but is not paid, taxed each year?

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Definitions:

Regional Metamorphism

Metamorphism affecting an extensive region and related mostly to regional burial, heating, and deformation of rocks.

Contact Metamorphism

Metamorphism that principally involves heating of the rocks next to a magma or hot igneous material.

Subduction

The process by which one tectonic plate moves under another and sinks into the mantle as the plates converge.

Thrust Faulting

A type of faulting where one rock layer is pushed up and over another due to compressional forces.