Statutory overpayment-interest limits apply in the savings-bond context

Plain-English summary

Chief Counsel addressed interest in connection with the purchase of U.S. Series I savings bonds through Form 8888. The brief email states that, in the bond context, the listed provisions of Section 6611 apply when their conditions are met. Those provisions would prohibit or limit payment of interest as described in the statute. The released text does not provide further facts or analysis.

Ruling snapshot

• Question: Do specified Section 6611 limits on interest payments apply in the savings-bond context?
• Outcome: Advice given, the provisions prohibit or limit interest when applicable
• Key authorities: IRC § 6611(b)(3), (e)(1), (e)(3), and (g)

Full text (IRS public release)

ID:      CCA_2021080609590950
UILC:    103.00-00

Number: 202139008
Release Date: 10/1/2021
From: ---------------------
Sent: Friday, August 6, 2021 9:59:09 AM
To: --------------------
Cc:
Bcc:
Subject: RE: Form 8888 & Interest on Purchase of U.S. Series I Savings Bonds


[-------and I are in agreement that in the bond context, when these provisions
[6611(b)(3), (e)(1), (e)(3), and (g)] are applicable, they would prohibit or limit payment of
interest as described in the statute
]