@notAnAspiringAccountant
Got it. I should have read your original post more carefully. You are talking about Treasury Bills, which are by default zero coupon (and mature in less than a year). I thought you were referring to longer term treasury bonds, some of which are sold as zero coupon. STRIPS (Separate Trading of Registered Interest and Principal of Securities) refers to the fact that interest payments are separated from the principal on longer term Treasury Bonds. (So the principal portion has zero coupon)
I also had some Treasury Bills and see that the difference between purchase price and redemption amount is, in fact, in Box 3 on the 1099-INT. So much easier to deal with. This is my second year dealing with US Treasuries and taxes. Last year was all T Bills.
