US Tax Abroad - Expatriate Form Schedule B
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This document is an IRS Schedule B form for reporting interest and ordinary dividends for tax year 2011. It contains instructions for reporting interest income, including interest from seller-financed mortgages. It also contains sections to report ordinary dividends, foreign accounts and trusts, and provides definitions for key terms like foreign financial accounts. The form must be attached to Form 1040 or 1040A to report over $1,500 of taxable interest or dividends, interest from seller-financed mortgages, or if the taxpayer had foreign accounts or was involved with foreign trusts.
US Tax Abroad - Expatriate Form Schedule B
- 1. SCHEDULE B OMB No. 1545-0074 Interest and Ordinary Dividends 2011 (Form 1040A or 1040) Department of the Treasury ▶ Attach to Form 1040A or 1040. ▶ See instructions on back. Attachment Internal Revenue Service (99) Sequence No. 08 Name(s) shown on return Your social security number Part I 1 List name of payer. If any interest is from a seller-financed mortgage and the Amount buyer used the property as a personal residence, see instructions on back and list Interest this interest first. Also, show that buyer’s social security number and address ▶ (See instructions on back and the instructions for Form 1040A, or Form 1040, 1 line 8a.) Note. If you received a Form 1099-INT, Form 1099-OID, or substitute statement from a brokerage firm, list the firm’s name as the 2 Add the amounts on line 1 . . . . . . . . . . . . . . . . . . 2 payer and enter the total interest 3 Excludable interest on series EE and I U.S. savings bonds issued after 1989. shown on that Attach Form 8815 . . . . . . . . . . . . . . . . . . . . . 3 form. 4 Subtract line 3 from line 2. Enter the result here and on Form 1040A, or Form 1040, line 8a . . . . . . . . . . . . . . . . . . . . . . ▶ 4 Note. If line 4 is over $1,500, you must complete Part III. Amount Part II 5 List name of payer ▶ Ordinary Dividends (See instructions on back and the instructions for Form 1040A, or Form 1040, 5 line 9a.) Note. If you received a Form 1099-DIV or substitute statement from a brokerage firm, list the firm’s name as the payer and enter the ordinary 6 Add the amounts on line 5. Enter the total here and on Form 1040A, or Form dividends shown on that form. 1040, line 9a . . . . . . . . . . . . . . . . . . . . . . ▶ 6 Note. If line 6 is over $1,500, you must complete Part III. You must complete this part if you (a) had over $1,500 of taxable interest or ordinary dividends; (b) had a foreign account; or (c) received a distribution from, or were a grantor of, or a transferor to, a foreign trust. Yes No Part III 7a At any time during 2011, did you have a financial interest in or signature authority over a financial account (such as a bank account, securities account, or brokerage account) located in a foreign Foreign country? See instructions . . . . . . . . . . . . . . . . . . . . . . . . Accounts If “Yes,” are you required to file Form TD F 90-22.1 to report that financial interest or signature and Trusts authority? See Form TD F 90-22.1 and its instructions for filing requirements and exceptions to (See those requirements . . . . . . . . . . . . . . . . . . . . . . . . . . instructions on b If you are required to file Form TD F 90-22.1, enter the name of the foreign country where the back.) financial account is located ▶ 8 During 2011, did you receive a distribution from, or were you the grantor of, or transferor to, a foreign trust? If “Yes,” you may have to file Form 3520. See instructions on back . . . . . . For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 17146N Schedule B (Form 1040A or 1040) 2011
- 2. Schedule B (Form 1040A or 1040) 2011 Page 2 General Instructions If you received interest as a nominee, you must give the actual owner a Form Financial account. A financial account includes, but is not limited to, a securities, brokerage, savings, Section references are to the Internal Revenue Code TIP 1099-INT unless the owner is your demand, checking, deposit, time deposit, or other unless otherwise noted. spouse. You must also file a Form 1096 account maintained with a financial institution (or and a Form 1099-INT with the IRS. For other person performing the services of a financial What's New more details, see the General Instructions for Certain institution). A financial account also includes a If additional information with respect to Schedule B Information Returns and the Instructions for Forms commodity futures or options account, an insurance (Form 1040A or 1040) develops later in the filing 1099-INT and 1099-OID. policy with a cash value (such as a whole life season, the IRS will make that information available Accrued interest. When you buy bonds between insurance policy), an annuity policy with a cash at www.irs.gov/form1040. interest payment dates and pay accrued interest to value, and shares in a mutual fund or similar pooled the seller, this interest is taxable to the seller. If you fund (that is, a fund that is available to the general Purpose of Form received a Form 1099 for interest as a purchaser of a public with a regular net asset value determination and regular redemptions). bond with accrued interest, follow the rules earlier Use Schedule B if any of the following applies. under Nominees to see how to report the accrued Financial account located in a foreign country. • You had over $1,500 of taxable interest or ordinary interest. But identify the amount to be subtracted as A financial account is located in a foreign country if dividends. “Accrued Interest.” the account is physically located outside of the • You received interest from a seller-financed Original issue discount (OID). If you are reporting United States. For example, an account maintained mortgage and the buyer used the property as a OID in an amount less than the amount shown on with a branch of a United States bank that is personal residence. Form 1099-OID, follow the rules earlier under physically located outside of the United States is a Nominees to see how to report the OID. But identify foreign financial account. An account maintained • You have accrued interest from a bond. the amount to be subtracted as “OID Adjustment.” with a branch of a foreign bank that is physically • You are reporting original issue discount (OID) in located in the United States is not a foreign financial an amount less than the amount shown on Form Amortizable bond premium. If you are reducing your account. 1099-OID. interest income on a bond by the amount of amortizable bond premium, follow the rules earlier under Nominees Signature authority. Signature authority is the • You are reducing your interest income on a bond authority of an individual (alone or in conjunction to see how to report the interest. But identify the amount by the amount of amortizable bond premium. with another individual) to control the disposition of to be subtracted as “ABP Adjustment.” • You are claiming the exclusion of interest from assets held in a foreign financial account by direct Line 3. If, during 2011, you cashed series EE or I communication (whether in writing or otherwise) to series EE or I U.S. savings bonds issued after 1989. U.S. savings bonds issued after 1989 and you paid the bank or other financial institution that maintains • You received interest or ordinary dividends as a qualified higher education expenses for yourself, the financial account. See the Instructions for Form nominee. your spouse, or your dependents, you may be able TD F 90-22.1 (Report of Foreign Bank and Financial • You had a financial interest in, or signature to exclude part or all of the interest on those bonds. Accounts) for exceptions, and definitions of authority over, a financial account in a foreign See Form 8815 for details. "financial interest," "United States," and other country or you received a distribution from, or were relevant terms. Do not consider the exceptions a grantor of, or transferor to, a foreign trust. Part III Part II. Ordinary Dividends relating to signature authority in answering Question of the schedule has questions about foreign You may have to file Form 5471 if, in 1 on line 7a. accounts and trusts. 2011, you were an officer or director of Note. You can get Form TD F 90-22.1 from the IRS TIP a foreign corporation. You may also website at www.irs.gov/pub/irs-pdf/f90221.pdf. Specific Instructions have to file Form 5471 if, in 2011, you owned 10% or more of the total Line 7a–Question 2. See Form TD F 90-22.1 and its (a) value of a foreign corporation’s stock, or (b) instructions to determine whether you must file the You can list more than one payer on form. Check the “Yes” box if you are required to file combined voting power of all classes of a foreign each entry space for lines 1 and 5, but the form; check the "No" box if you are not required TIP be sure to clearly show the amount paid corporation’s stock with voting rights. For details, see Form 5471 and its instructions. to file the form. next to the payer's name. Add the Line 5. Report on line 5 all of your ordinary If you checked the “Yes” box to Question 2 on line separate amounts paid by the payers listed on an entry space and enter the total in the dividends. This amount should be shown in box 1a 7a, file Form TD F 90-22.1 with the Department of “Amount” column. If you still need more space, attach of your Forms 1099-DIV or substitute statements. Treasury at the address shown in the instructions for separate statements that are the same size as the List each payer’s name and show the amount. that form. Do not attach Form TD F 90-22.1 to your printed schedule. Use the same format as lines 1 and Nominees. If you received a Form 1099-DIV that tax return. To be considered timely, Form TD F 5, but show your totals on Schedule B. Be sure to put includes ordinary dividends you received as a 90-22.1 must be received by June 30, 2012. your name and social security number (SSN) on the nominee (that is, in your name, but the ordinary ▲ If you are required to file Form TD F ! statements and attach them at the end of your return. dividends actually belong to someone else), report 90-22.1 but do not properly do so, you the total on line 5. Do this even if you later may have to pay a civil penalty up to Part I. Interest distributed some or all of this income to others. $10,000. A person who willfully fails to CAUTION Line 1. Report on line 1 all of your taxable interest. Under your last entry on line 5, put a subtotal of all report an account or provide account Taxable interest should be shown on your Forms ordinary dividends listed on line 5. Below this identifying information may be subject to a civil 1099-INT, Forms 1099-OID, or substitute subtotal, enter “Nominee Distribution” and show the penalty equal to the greater of $100,000 or 50 statements. Include interest from series EE, H, HH, total ordinary dividends you received as a nominee. percent of the balance in the account at the time of and I U.S. savings bonds. List each payer’s name Subtract this amount from the subtotal and enter the the violation. Willful violations may also be subject to and show the amount. Do not report on this line any result on line 6. criminal penalties. tax-exempt interest from box 8 or box 9 of Form If you received dividends as a nominee, Line 7b. If you are required to file Form TD F 1099-INT. Instead, report the amount from box 8 on you must give the actual owner a Form 90-22.1, enter the name of the foreign country or line 8b of Form 1040A or 1040. If an amount is shown in box 9 of Form 1099-INT, you generally TIP 1099-DIV unless the owner is your spouse. countries in the space provided on line 7b. Attach a You must also file a Form 1096 and a Form separate statement if you need more space. must report it on line 12 of Form 6251. See the 1099-DIV with the IRS. For more Instructions for Form 6251 for more details. Line 8. If you received a distribution from a foreign details, see the General Instructions for Certain trust, you must provide additional information. For Seller-financed mortgages. If you sold your Information Returns and the Instructions for Form this purpose, a loan of cash or marketable securities home or other property and the buyer used the 1099-DIV. generally is considered to be a distribution. See property as a personal residence, list first any Form 3520 for details. interest the buyer paid you on a mortgage or other Part III. Foreign Accounts and form of seller financing. Be sure to show the buyer’s Trusts If you were the grantor of, or transferor to, a name, address, and SSN. You must also let the foreign trust that existed during 2011, you may have Regardless of whether you are required buyer know your SSN. If you do not show the to file Form 3520. to file Form TD F 90-22.1 (FBAR), you buyer’s name, address, and SSN, or let the buyer know your SSN, you may have to pay a $50 penalty. TIP may be required to file Form 8938, Do not attach Form 3520 to Form 1040. Instead, file it at the address shown in its instructions. Statement of Specified Foreign Nominees. If you received a Form 1099-INT that Financial Assets, with your income tax If you were treated as the owner of a foreign trust includes interest you received as a nominee (that is, in return. Failure to file Form 8938 may result in under the grantor trust rules, you are also your name, but the interest actually belongs to penalties and extension of the statute of limitations. responsible for ensuring that the foreign trust files someone else), report the total on line 1. Do this even See www.irs.gov/form8938 for more information. Form 3520-A. Form 3520-A is due on March 15, if you later distributed some or all of this income to Line 7a–Question 1. Check the “Yes” box if at any 2012, for a calendar year trust. See the instructions others. Under your last entry on line 1, put a subtotal time during 2011 you had a financial interest in or for Form 3520-A for more details. of all interest listed on line 1. Below this subtotal, enter signature authority over a financial account located "Nominee Distribution" and show the total interest in a foreign country. See the definitions that follow. you received as a nominee. Subtract this amount from Check the “Yes” box even if you are not required to the subtotal and enter the result on line 2. file Form TD F 90-22.1.