According to Ian Pilcher <arequipeno@gmail.com>:

Is this correct? If so, is this rule written down anywhere? (My
searches for anything official on this topic have come up empty thus
far.)

IRS Publication 550 says:

In general, any interest that you receive or that is credited to your
account and can be withdrawn is taxable income.

and

Certificates of deposit and other deferred interest accounts. If you
buy a certificate of deposit or open a deferred interest account,
interest may be paid at fixed intervals of 1 year or less during the
term of the account. You generally must include this interest in your
income when you actually receive it or are entitled to receive it
without paying a substantial penalty. The same is true for accounts
that mature in 1 year or less and pay interest in a single payment at
maturity. If interest is deferred for more than 1 year, see Original
Issue Discount (OID), later.

So yes, you pay tax when the CD matures. Your bank or broker should send
you a 1099-INT saying how much.




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Please consider the environment before reading this e-mail. https://jl.ly

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