Instructions For Form 1097-Btc Draft - Bond Tax Credit

Who Must File

Reporting period:

To recipient (on or before):

File Form 1097-BTC, Bond Tax Credit, for each person

who is allowed a tax credit as a holder, directly or

Quarter: January – March

May 15*

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

Quarter: April – June

August 15*

on one or more credit allowance dates during the calendar

Quarter: July – September

November 15*

year in an amount of at least $10. Filings of Form

1097-BTC with respect to a bond, by the issuer or the

Annual/4

Quarter: October –

February 15*

December

issuer's agent, must be made on a separate Form

DRAFT AS OF

1097-BTC for each bond. Recipients of Form 1097-BTC

*Dates may change due to weekends or holidays

from the bond issuer or agent, such as mutual funds or

partnerships, who are further distributing the credit must

For the first three quarters, report to the recipient only

file only one Form 1097-BTC per recipient or account,

the amounts for the months of the applicable quarter. Box

aggregating credit from all applicable bonds.

1 should not be completed and boxes 2a, 2b, and 6 are

August 16, 2013

The tax credit from tax credit bonds or stripped credit

optional.

coupons is allowed on each credit allowance date for

You are not required to furnish a report solely for the

which the bond was outstanding or to which the stripped

fourth quarter because the fourth quarter amounts are

credit coupon corresponds. For qualified tax credit bonds

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

and clean renewable energy bonds the credit allowance

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

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

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

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

as applicable. Furnish the annual filing to the recipient by

bonds issued during the 3-month period ending on a

February 17, 2015.

credit allowance date, the amount of the credit is

determined ratably based on the portion of the 3-month

If any amounts previously furnished for the first three

period during which the bond is outstanding. The same

quarters need to be corrected, report the correct amounts

ratable determination of credit applies when a bond is

for the annual reporting and explain the correction to the

redeemed or matures. For build America bonds (Tax

recipient; no explanation is required for the IRS filing.

Credit), the credit allowance dates are the interest

payment dates. For qualified zone academy bonds issued

For the report furnished to the recipient (quarterly or

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

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

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

statement reporting all the same applicable information

of the bond and each anniversary of such day thereafter.

(the reporting for the first three quarters may be furnished

electronically). See Publication 1179, General Rules and

The tax credit allowed to holders of any tax credit

Specifications for Substitute Forms 1096, 1098, 1099,

bonds or stripped credit coupons is treated as interest

5498, and Certain Other Information Returns, for specific

which is included in gross income and must be reported

rules about providing substitute statements to recipients.

as interest income on a Form 1099-INT or Form

1099-OID, as applicable. For more information on

The IRS encourages Form 1097-BTC issuers to

reporting the tax credit treated as interest income paid

provide the credit information to the recipient monthly if

from tax credit bonds, see the Instructions for Forms

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

1099-INT and 1099-OID.

which a credit arises as possible.

When to File

For more information about the requirement to furnish a

statement to the recipient, see part M in the 2014 General

File Copy A of Form 1097-BTC with the IRS by March 2,

Instructions for Certain Information Returns.

2015 (March 31, 2015, if filed electronically). See

Statement to Recipient, below, for furnishing statements

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

to recipients.

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

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

Penalties for Failure to File

number for the bond or stripped coupon, unless a CUSIP

There are penalties for failure to file correct information

number was not issued for the bond.

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 2014 General

Instructions for Certain Information Returns for details.

Telephone Number

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

2014 General Instructions for Certain Information Returns.

1097-BTC.

Statement to Recipient

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

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

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

statement to the recipient quarterly for each credit amount

principal office or place of business. Include the suite,

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

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

month after the close of the calendar quarter in which the

post office does not deliver mail to the street address and

credit was allowed.

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

-2-

Instructions for Form 1097-BTC (2014)

Instructions For Form 1097-Btc Draft - Bond Tax Credit - 2014 Page 3

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