From: utzoo!decvax!harpo!eagle!mhuxt!jhs
Newsgroups: net.taxes
Title: Re:  Avoiding Interest Withholding
Article-I.D.: mhuxt.1115
Posted: Tue Feb  8 11:41:00 1983
Received: Fri Feb 11 02:14:54 1983

In response to the suggestion that funds be switched before cumulative 
interest reaches $150:  The new law requires withholding at that point,
and leaves it optional before then.  However, if (as I would expect)
the withholding process is computerized, it will probably be less 
expensive for banks, etc. to withhold from *everyone* rather than 
distinguish net amounts withheld.  This is analogous to the situation
with regard to checks:  law requires any personal check over a certain
amount (~$200, I believe) to be microfilmed.  I doubt very many institutions
would go to the expense of distinguishing amounts, and most just microfilm
*every* check.  If you really want to avoid withholding, I would suggest
looking into tax-free bonds, either singles issues or via mutual funds.


Jerry