[Code of Federal Regulations]
[Title 31, Volume 2]
[Revised as of July 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR356.32]

[Page 387]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
         CHAPTER II--FISCAL SERVICE, DEPARTMENT OF THE TREASURY
 
PART 356_SALE AND ISSUE OF MARKETABLE BOOK-ENTRY TREASURY BILLS, NOTES, AND 
 
                   Subpart D_Miscellaneous Provisions
 
Sec. 356.32  What tax rules apply?

    (a) General. Securities issued under this part are subject to all 
applicable taxes imposed under the Internal Revenue Code of 1986, or its 
successor. Under section 3124 of title 31, United States Code, the 
securities are exempt from taxation by a State or political subdivision 
of a State, except for State estate or inheritance taxes and other 
exceptions as provided in that section.
    (b) Treasury inflation-protected securities. Special federal income 
tax rules for inflation-protected securities, including stripped 
inflation-protected principal and interest components, are set forth in 
Internal Revenue Service regulations.