Form 1097-BTC reports tax credit allocations for certain bonds, such as Build America Bonds and Qualified Zone Academy Bonds. Accurate filing ensures both the IRS and bondholders track credits correctly.
1. Quarterly Filing Requirements
-
Due Dates: The form must be filed each quarter. Deadlines are:
-
First Quarter: April 30
-
Second Quarter: July 31
-
Third Quarter: October 31
-
Fourth Quarter: January 31 of the following year
-
-
Purpose: Quarterly reports let the IRS and bondholders track tax credits as they are allocated during the year. This ensures accurate, timely reporting.
2. Annual Summary Requirement
-
End-of-Year Summary: In addition to quarterly filings, an annual Form 1097-BTC must be submitted at the end of the tax year.
-
Reconciliation: This final filing consolidates all quarterly data and provides the total credits allocated to each bondholder. It also verifies that quarterly and annual totals match. This summary is critical for preparing final tax returns.
3. Information Required on the Form
-
Taxpayer and Bond Details: Each filing lists the taxpayer’s name, Taxpayer Identification Number (TIN), bond type, and the credit amount for that quarter.
-
Aggregate Credit Totals: The annual filing combines these quarterly amounts to confirm that all credits align.
4. Who Must File
Bond issuers or trustees file Form 1097-BTC with the IRS and send copies to bondholders. Bondholders do not file the form themselves. This process ensures that all tax credits are correctly recorded and reported.
Conclusion:
Following these reporting rules ensures accurate tracking of bond tax credits. Quarterly filings keep data current, while the annual summary confirms totals and supports compliance.