original issue discount obligation
(1) Original issue discount obligation (A) In general Except as provided in subparagraph (B), the term “original issue discount obligation” means any bond or other evidence of indebtedness having original issue discount (within the meaning of section 1273 ). (B) Exceptions The term “original issue discount obligation” shall not include— (i) Certain short-term obligations Any obligation payable 183 days or less from the date of original issue (without regard to the period held by the taxpayer). (ii) Tax-exempt obligations Any obligation the interest on which is exempt from tax under section 103 or under any other provision of law without regard to the identity of the holder.