The 1097 BTC form is widely used by the issuers of tax credit bonds. The IRS requires the document from them to make sure that certain tax credits are distributed. The form is not complicated, but you have to follow detailed instructions. The report must be annual but describe every month of your tax credit history.

What Is IRS Form 1097-BTC?

Form 1097 BTC was provided by the Internal Revenue Service for the issuers of bond tax credits. It is an official report that is provided every year on the tax credit. You may need this document if you are either an issuer of the tax credit bond or an agent of the issuer. The form is sent not only to the IRS representatives but to the partnership or mutual fund.

Who Must File 1097 BTC Form?

If you have already learned what a tax credit bond is, you may have an idea of who can file the document. Normally, there are a few types of taxpayers who need to use the form and provide it to the IRS. However, you can also be one of those taxpayers who need to receive the form from the person who completes it. Here is the list of anyone who needs the form:

  • Issuers of tax credit bonds have to provide the form every year or every quarter based on their specifics for every tax credit that was received;
  • Nominees like partnerships, brokers, trusts, investment companies, estates, and investment trusts of real estate also have to provide the form to the IRS;
  • Taxpayers who can receive tax credits from the tax credit bonds or just tax credits during the year of $10 and over have to file the document.

Instructions for Form 1097-BTC

The form 1097-BTC bond tax credit report is not that hard to understand. The form consists of 1 page with numerous copies you have to send to different people and the IRS. There are numerous instructions on the last page of the template. The IRS 1097-BTC can be downloaded from IRS or from PDFLiner, where you can fill it out online. To do this, you have to follow the next steps:

  1. Provide information on the issuer, including name, address, and phone number. Don’t forget to write down the issuer’s TIN;
  2. Provide information on the recipient. The information can be changed based on the copy you are currently filling. Include the TIN number and the name. 1097 BTC form also needs the street and city address of the person or company, including ZIP. If the second party is from another country, you need to write down the postal code as well;
  3. Pick the most appropriate box in the section on the issuer, and put the tick in it;
  4. Include the total amount of money;
  5. Write down the code and unique identifier in sections 2a and 2b;
  6. Include bond type. Put the correct amount of money you’ve received each month in sections from 5a to 5l;
  7. If you have more information to add, you can do it in section 6, named Comments.

Copy A must be sent to the Internal Revenue Service Center. Copy B is for the recipient. Copy C is for the payer. You will find detailed instructions on how to complete each box in the form as well. Pay attention to them before you start filling anything. Make sure you provide specific information for each copy you fill. There are strict rules that oblige you to send copies only to those people or organizations mentioned in the corners of the pages. If you send copy B to the IRS, the service may simply send you the form back with the error.

1097-BTC Deadline

The IRS form 1097-BTC must be filed by the deadline, or you will be fined. There is a schedule you have to follow while sending the form to each party. For example, you need to find out when to send the form to the vendors and when to the IRS. If you can’t keep the information in your head, it is better to create a schedule on the computer. It is better not to wait till the deadline. Here is what you need to keep in mind:

  • Copy to the recipient must be filed by the 15th day of the second month in the calendar after you close the calendar month that had the allowance for the credit;
  • Send the document to the IRS until March 31 if you file it electronically. If you prefer to send a document in the paper, you have to do it by February 28.

Bottom Line

Once you learn how to fill and when you need the 1097-BTC form, you can check it out online. The form is simple but requires detailed calculations. Try to be specific and send the document before the deadline.

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