Instructions For Form 1097-Btc - Bond Tax Credit

are to be so used and issued before October 4, 2008, as

Instructions for Certain Information Returns for details.

provided by section 1397E.

The failure to file Forms 1097-BTC also includes the

requirement to file electronically. For more information on

Qualified school construction bond. An obligation that

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

is part of an issue, 100% of the available project proceeds

2018 General Instructions for Certain Information Returns.

of which are to be used for the construction, rehabilitation,

or repair of a public school facility or for the acquisition of

Statement to Recipient

land on which such a facility is to be constructed with the

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

proceeds, as provided in section 54F.

statement to the recipient quarterly for each credit amount

Clean renewable energy bond. An obligation that is

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

part of an issue, 95% or more of the proceeds of which

month after the close of the calendar quarter in which the

are used for capital expenditures incurred by qualified

credit was allowed.

borrowers for one or more qualified projects, as defined in

section 54.

Quarterly Furnishing Dates

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*

Quarter: April – June

August 15*

Who Must Receive Form 1097-BTC

Quarter: July – September

November 15*

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

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

*Dates may change due to weekends or holidays

be issued Form 1097-BTC.

Credit Allowance Dates

For the first 3 quarters, report to the recipient only the

amounts for the months of the applicable quarter. Box 1

The tax credit from tax credit bonds or stripped credit

should not be completed and box 6 is optional.

coupons is allowed on each credit allowance date for

which the bond was outstanding or to which the stripped

You are not required to furnish a separate report solely

credit coupon corresponds. For qualified tax credit bonds

for the 4th quarter because the 4th quarter amounts are

and clean renewable energy bonds, the credit allowance

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

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

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

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

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

bonds issued during the 3-month period ending on a

form as applicable. Furnish the annual filing to the

credit allowance date, the amount of the credit is

recipient by February 15, 2019.

determined ratably based on the portion of the 3-month

period during which the bond is outstanding. The same

If any amounts previously furnished for the first 3

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 tax credit allowed to holders of any tax credit

(the reporting for the first 3 quarters may be furnished

bonds or stripped credit coupons is treated as interest

electronically). See Pub. 1179 for specific rules about

which is included in gross income and must be reported

providing substitute statements to recipients.

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

When To File

statement to the recipient, see part M in the 2018 General

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

Instructions for Certain Information Returns.

28, 2019 (April 1, 2019, if filed electronically). See

Statement to

Recipient, later, for furnishing statements to

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

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

number was not issued for the bond. See the instructions

There are penalties for failure to file correct information

for boxes

and 2b.

returns by the due date and for failure to furnish correct

payee statements. See part O in the 2018 General

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Instructions for Form 1097-BTC (2018)

Instructions For Form 1097-Btc - Bond Tax Credit - 2018 Page 2

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