I recall commercial paper paying 21% (Int Harvester) AND not even getting a 1099 for the money made. It was all done through a bank which for some reason simply pooled all the money dedicated to commercial paper according to the paper they were buying and then used their own id number for tax purposes. This is how it was explained to me and I didn’t spend to much time worrying about it. After all earning 21% tax free would seem to come under the sort of gift horse one doesn’t want to look in the mouth
Yep. I’m (barely) old enough to remember bearer bonds and literally “clipping coupons.” There were plenty of ways to avoid reporting the income.
Sadly, bearer bonds have gone the way of all simpler times.