Instructions For Form 1097-Btc - Bond Tax Credit

borrowers for one or more qualified projects, as defined in

month after the close of the calendar quarter in which the

section 54.

credit was allowed.

Build America bond (Tax Credit). An obligation issued

by a state or local government (excluding private activity

Reporting period:

To recipient (on or before):

bonds under section 141) as defined in section 54AA(d).

Quarter: January – March

May 15*

Who Must Receive Form 1097-BTC

Quarter: April – June

August 15*

Each person who is allowed a tax credit as a holder,

Quarter: July – September

November 15*

directly or indirectly, of a tax credit bond or a stripped

Annual/4

Quarter: October –

February 15*

credit coupon on one or more credit allowance dates

December

during the calendar year in an amount of at least $10 must

be issued Form 1097-BTC.

*Dates may change due to weekends or holidays

Credit Allowance Dates

For the first three quarters, report to the recipient only

The tax credit from tax credit bonds or stripped credit

the amounts for the months of the applicable quarter. Box

coupons is allowed on each credit allowance date for

1 should not be completed and box 6 is optional.

which the bond was outstanding or to which the stripped

credit coupon corresponds. For qualified tax credit bonds

You are not required to furnish a separate report solely

and clean renewable energy bonds the credit allowance

for the fourth quarter because the fourth quarter amounts

dates are March 15, June 15, September 15, December

are reported with the annual filing. For the annual filing,

15, and the last day on which the bond is outstanding. For

report the credits for each month in boxes 5a–5l; report

bonds issued during the 3-month period ending on a

the total of those amounts in box 1; and complete the rest

credit allowance date, the amount of the credit is

of the form as applicable. Furnish the annual filing to the

determined ratably based on the portion of the 3-month

recipient by February 15, 2018.

period during which the bond is outstanding. The same

If any amounts previously furnished for the first three

ratable determination of credit applies when a bond is

quarters need to be corrected, report the correct amounts

redeemed or matures. For build America bonds (Tax

for the annual reporting and explain the correction to the

Credit), the credit allowance dates are the interest

recipient; no explanation is required for the IRS filing.

payment dates. For qualified zone academy bonds issued

before October 4, 2008, the credit allowance date is the

For the report furnished to the recipient (quarterly or

last day of the 1-year period beginning on the issue date

annual), you may use Copy B or your own substitute

of the bond and each anniversary of such day thereafter.

statement reporting all the same applicable information

(the reporting for the first three quarters may be furnished

The tax credit allowed to holders of any tax credit

electronically). See Pub.1179 for specific rules about

bonds or stripped credit coupons is treated as interest

providing substitute statements to recipients.

which is included in gross income and must be reported

as interest income on a Form 1099-INT or Form

The IRS encourages Form 1097-BTC issuers to

1099-OID, as applicable. For more information on

provide the credit information to the recipient monthly if

reporting the tax credit treated as interest income paid

applicable, and as soon after the end of the month in

from tax credit bonds, see the Instructions for Forms

which a credit arises as possible.

1099-INT and 1099-OID.

For more information about the requirement to furnish a

statement to the recipient, see part M in the 2017 General

When To File

Instructions for Certain Information Returns.

File Copy A of Form 1097-BTC with the IRS by February

28, 2018 (April 2, 2018, if filed electronically). See

Bond Issuer. If issuing the Form 1097-BTC as an issuer

Statement to Recipient below for furnishing statements to

of the bond or its agent, box 2a of the form will always

recipients.

reflect code “C” and box 2b must reflect the CUSIP

number for the bond or stripped coupon, unless a CUSIP

Penalties for Failure To File

number was not issued for the bond. See the instructions

for boxes 2a and 2b.

There are penalties for failure to file correct information

returns by the due date and for failure to furnish correct

Form 1097-BTC Issuer's Name, Address, and

payee statements. See part O in the 2017 General

Telephone Number

Instructions for Certain Information Returns for details.

The failure to file Forms 1097-BTC also includes the

Enter the name, street address, city or town, state or

requirement to file electronically. For more information on

province, country, ZIP or foreign postal code, and

penalties for failure to file electronically, see part F in the

telephone number of the entity issuing the Form

2017 General Instructions for Certain Information Returns.

1097-BTC.

Enter the entity's true name (as set forth in the legal

Statement to Recipient

documents creating it). Enter the address of the entity's

If required to file Form 1097-BTC, you must furnish a

principal office or place of business. Include the suite,

statement to the recipient quarterly for each credit amount

room, or other unit number after the street address. If the

indicated on or before the 15th day of the 2nd calendar

post office does not deliver mail to the street address and

the entity has a P.O. box, show the box number instead.

-2-

Instructions for Form 1097-BTC (2017)

Instructions For Form 1097-Btc - Bond Tax Credit - 2017 Page 2

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