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