You'll receive a 1099-INT each year with an amount in box 3 for the interest earned on your treasuries as well as an amount in box 10 for the market discount. You'll enter those each year as they appear.
If you choose to defer reporting the market discount then you will not report the amount in box 10. You will save the forms for each year and when you sell or redeem the obligations you will report the total for all of the box 10s that you received while you held the treasuries. Make sure to save those forms if you are planning to do that, however.
@spichon
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