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crued interest. But identify the amount

tion about OID, bond premium, and ac-

If you received dividends as a

to be subtracted as “Accrued Interest.”

quisition premium.

nominee, you must give the ac-

TIP

tual owner a Form 1099-DIV

Also include on line 8b of your Form

Original issue discount (OID). If

(unless the owner is your spouse) and

1040 or 1040A, any exempt-interest div-

you are reporting OID in an amount less

file Forms 1096 and 1099-DIV with the

idends from a mutual fund or other regu-

than the amount shown in box 1 or

IRS. For more details, see the General

lated investment company. This amount

box 8 of Form 1099-OID, follow the

Instructions for Certain Information Re-

should be shown in box 10 of Form

rules earlier under

Nominees

to see how

turns and the Instructions for Form

1099-DIV.

to report the OID. But identify the

1099-DIV.

amount to be subtracted as “OID Adjust-

If an amount is shown in box 9 of

ment.” However, if the payer reported to

Form 1099-INT, you generally must re-

Part III. Foreign Accounts

you a net amount of OID on the bond re-

port it on line 12 of Form 6251. See the

and Trusts

flecting the offset of the gross amount of

Instructions for Form 6251 at

IRS.gov/

OID by any acquisition premium, no re-

Form6251

for details.

Regardless of whether you are

duction of the amount of OID income

Line 3. If, during 2017, you cashed ser-

required to file FinCEN Form

TIP

reported to you by the payer may be

ies EE or I U.S. savings bonds issued af-

114 (FBAR), you may be re-

needed on Schedule B for the bond.

ter 1989 and you paid qualified higher

quired to file Form 8938, Statement of

education expenses for yourself, your

Specified Foreign Financial Assets, with

Amortizable bond premium. If you

spouse, or your dependents, you may be

your income tax return. Failure to file

elect to reduce your interest income on a

able to exclude part or all of the interest

Form 8938 may result in penalties and

taxable bond by the amount of taxable

on those bonds. See Form 8815 at

extension of the statute of limitations.

amortizable bond premium, follow the

IRS.gov/Form8815

for details.

See

IRS.gov/Form8938

for more infor-

rules earlier under

Nominees

to see how

Part II. Ordinary Dividends

mation.

to report the interest. But identify the

amount to be subtracted as “ABP Ad-

Line 7a–Question 1. Check the “Yes”

You may have to file Form

justment.” However, if the payer repor-

box if at any time during 2017 you had a

5471 if, in 2017, you were an

ted to you a net amount of interest in-

TIP

financial interest in or signature authori-

officer or director of a foreign

come on the bond reflecting the offset of

ty over a financial account located in a

corporation. You also may have to file

the gross amount of interest income by

foreign country. See the definitions that

Form 5471 if, in 2017, you owned 10%

the amortizable bond premium, no re-

follow. Check the “Yes” box even if you

or more of the total (a) value of a for-

duction of the amount of interest income

aren't required to file FinCEN Form 114.

eign corporation’s stock, or (b) com-

reported to you by the payer is needed

bined voting power of all classes of a

on Schedule B for the bond.

Financial account. A financial ac-

foreign corporation’s stock with voting

count includes, but isn't limited to, a se-

Tax-exempt interest. If you received

rights. For details, see Form 5471 and

curities, brokerage, savings, demand,

any tax-exempt interest (including any

its instructions at IRS.gov/Form5471.

checking, deposit, time deposit, or other

tax-exempt OID), such as from munici-

account maintained with a financial in-

pal bonds, each payer should send you a

Line 5. Report on line 5 all of your or-

stitution (or other person performing the

Form 1099-INT or a Form 1099-OID. In

dinary dividends. This amount should be

services of a financial institution). A fi-

general, your tax-exempt stated interest

shown in box 1a of your Forms

nancial account also includes a com-

should be shown in box 8 of Form

1099-DIV or substitute statements.

modity futures or options account, an in-

1099-INT or, for a tax-exempt OID

surance policy with a cash value (such

Nominees. If you received a Form

bond, in box 2 of Form 1099-OID, and

as a whole life insurance policy), an an-

1099-DIV that includes ordinary divi-

your tax-exempt OID should be shown

dends you received as a nominee (that

nuity policy with a cash value, and

in box 11 of Form 1099-OID. Enter the

shares in a mutual fund or similar

is, in your name, but the ordinary divi-

total on line 8b of your Form 1040 or

pooled fund (that is, a fund that is avail-

dends actually belong to someone else),

1040A. However, if you acquired a

able to the general public with a regular

report the total on line 5. Do this even if

tax-exempt bond at a premium, only re-

net asset value determination and regu-

you later distributed some or all of this

port the net amount of tax-exempt inter-

lar redemptions).

income to others. Under your last entry

est on line 8b of your Form 1040 or

on line 5, put a subtotal of all ordinary

1040A (that is, the excess of the tax-ex-

Financial account located in a for-

dividends listed on line 5. Below this

empt interest received during the year

eign country. A financial account is lo-

subtotal, enter “Nominee Distribution”

over the amortized bond premium for

cated in a foreign country if the account

and show the total ordinary dividends

the year). Also, if you acquired a tax-ex-

is physically located outside of the Uni-

you received as a nominee. Subtract this

empt OID bond at an acquisition premi-

ted States. For example, an account

amount from the subtotal and enter the

um, only report the net amount of

maintained with a branch of a United

result on line 6.

tax-exempt OID on line 8b of your Form

States bank that is physically located

1040 or 1040A (that is, the excess of the

outside of the United States is a foreign

tax-exempt OID for the year over the

financial account. An account main-

amortized acquisition premium for the

tained with a branch of a foreign bank

year). See Pub. 550 for more informa-

B-2

Instructions For Schedule B (Form 1040a Or 1040) - Interest And Ordinary Dividends - 2017 Page 2

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