---
kind: "section"
citation: "31 C.F.R. § 356.32"
title: "31"
number: "356.32"
heading: "What tax rules apply?"
url: "https://uscodex.org/cfr/31/356.32"
---

# §356.32. What tax rules apply?

- (a) **General.** Securities issued under this part are subject to all applicable taxes imposed under the Internal Revenue Code of 1986, or its successor. Under [section 3124](/usc/31/3124.md) of title 31, United States Code, the securities are exempt from taxation by a State or political subdivision of a State, except for State estate or inheritance taxes and other exceptions as provided in that section.
- (b) **Treasury inflation-protected securities.** Special federal income tax rules for inflation-protected securities, including stripped inflation-protected principal and interest components, are set forth in Internal Revenue Service regulations.
- (c) **Treasury floating rate notes.** Special federal income tax rules for floating rate notes are set forth in Internal Revenue Service regulations.

## Notes

### Amendments

[69 FR 45202, July 28, 2004, as amended at 78 FR 46430, July 31, 2013]

### Authority

Authority: 5 U.S.C. 301; 31 U.S.C. 3102, et seq.; 12 U.S.C. 391.

### Source

Source: 69 FR 45202, July 28, 2004, unless otherwise noted.

### Amendments

[69 FR 45202, July 28, 2004, as amended at 78 FR 46430, July 31, 2013]