original issue discount
(6) Treatment of original issue discount (A) In general Original issue discount on any obligation shall be reported— (i) as if paid at the time it is includible in gross income under section 1272 (except that for such purpose the amount reportable with respect to any subsequent holder shall be determined as if he were the original holder), and (ii) if section 1272 does not apply to the obligation, at maturity (or, if earlier, on redemption). In the case of any obligation not in registered form issued before January 1, 1983 , clause (ii) and not clause (i) shall apply. (B) Original issue discount For purposes of this paragraph, the term “original issue discount” has the meaning given to such term by section 1273(a).