From: utzoo!decvax!yale-com!leichter
Newsgroups: net.taxes
Title: Re: Avoiding Interest Withholding
Article-I.D.: yale-com.830
Posted: Tue Feb  8 10:32:03 1983
Received: Fri Feb 11 04:33:48 1983
References: eagle.768

The limit at which institutions MUST start witholding is $100 interest for the
year.  They MAY, however, withold on smaller amounts, and most probably will,
since they then get to hold on to your money until the end of the quarter,
earning interest on it but not having to pay you anything.

One interesting (no pun intended) question is what happens if you have several
accounts at the same bank, no one earning more than $100, but together over
the limit?  The last I heard, the regulations on this - which are up to the
IRS to draft - had not yet been issued; the law as written doesn't say.
As always, though, expect the banks to be enthusiastic about witholding for
(against?) you, whatever the regs turn out to be.
							-- Jerry
						decvax!yale-comix!leichter