you call it cheating.. why?
The income is reported (in box 3 - you're still taxed on box 3 income). I'm not asking if I can get away with something.. I'm asking if anyone can point to the code or reg that dictates the distinction is between box 1 and box 3 reporting (especially when the payer hasn't specified, and the payer is the U.S. Dept. of the Treasury).
Answer 1 is Interest paid on US Treasury Obligations goes in Box 3. (The IRS is a division of the Department of the Treasury)
Answer 2 is that only interest on specific instruments issued by the Department of the Treasury goes in Box 3.
The code and regs are binding, not the instructions. So can anyone point the relevant code and or reg? That's all I'm asking.
