Instructions For Form 1097-Btc - Bond Tax Credit

Who Must File

For the first three quarters, report to the recipient only

the amounts for the months of the applicable quarter. Box

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

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

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

optional.

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

on one or more credit allowance dates during the calendar

You are not required to furnish a report solely for the

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

fourth quarter because the fourth quarter amounts are

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

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

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

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

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

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

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

as applicable. Furnish the annual filing to the recipient by

partnerships, who are further distributing the credit must

February 18, 2014.

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

If any amounts previously furnished for the first three

aggregating credit from all applicable bonds.

quarters need to be corrected, report the correct amounts

for the annual reporting and explain the correction to the

The tax credit from tax credit bonds or stripped credit

recipient; no explanation is required for the IRS filing.

coupons is allowed on each credit allowance date for

which the bond was outstanding or to which the stripped

For the report furnished to the recipient (quarterly or

credit coupon corresponds. For qualified tax credit bonds

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

and clean renewable energy bonds the credit allowance

statement reporting all the same applicable information

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

(the reporting for the first three quarters may be furnished

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

electronically).

bonds issued during the 3-month period ending on a

The IRS encourages Form 1097-BTC issuers to

credit allowance date, the amount of the credit is

provide the credit information to the recipient monthly if

determined ratably based on the portion of the 3-month

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

period during which the bond is outstanding. The same

which a credit arises as possible.

ratable determination of credit applies when a bond is

redeemed or matures. For build America bonds (Tax

See Publication 1179. For more information about the

Credit), the credit allowance dates are the interest

requirement to furnish a statement to the recipient, see

payment dates. For qualified zone academy bonds issued

part M in the 2013 General Instructions for Certain

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

Information Returns.

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

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

of the bond and each anniversary of such day thereafter.

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

The tax credit allowed to holders of any tax credit

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

bonds or stripped credit coupons is treated as interest

number for the bond or stripped coupon, unless a CUSIP

which is included in gross income and must be reported

number was not issued for the bond.

as interest income on a Form 1099-INT or Form

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

1099-OID, as applicable. For more information on

reporting the tax credit treated as interest income paid

Telephone Number

from tax credit bonds, see the Instructions for Forms

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

1099-INT and 1099-OID.

state, country, ZIP or foreign postal code, and telephone

number of the entity issuing the Form 1097-BTC.

When to File

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

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

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

28, 2014 (March 31, 2014, if filed electronically). See

principal office or place of business. Include the suite,

Statement to Recipient, below, for furnishing statements

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

to recipients.

post office does not deliver mail to the street address and

Penalties for Failure To File

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

There are penalties for failure to file correct information

Note. Do not use the address of the registered agent for

returns by the due date and for failure to furnish correct

the state in which the entity is incorporated. For example,

payee statements. See part O in the 2013 General

if a business is incorporated in Delaware or Nevada and

Instructions for Certain Information Returns for details.

the corporation's principal office is located in Little Rock,

The failure to file Forms 1097-BTC also includes the

AR, the corporation should enter the Little Rock address.

requirement to file electronically. For more information on

If the entity receives its mail in care of a third party

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

(such as an accountant or an attorney), enter for the street

2013 General Instructions for Certain Information Returns.

address “C/O” followed by the third party's name and

Statement to Recipient

street address or P.O. box.

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

Form 1097-BTC Issuer's Federal Identification

statement to the recipient quarterly for each credit amount

Number

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

month after the close of the calendar quarter in which the

Enter the Form 1097-BTC Issuer's federal identification

credit was allowed.

number, such as an employer identification number (EIN).

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Instructions for Form 1097-BTC (2013)

Instructions For Form 1097-Btc - Bond Tax Credit - 2013 Page 4

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