IRS Form 1097-BTC "Bond Tax Credit"

What Is IRS Form 1097?

IRS Form 1097-BTC, Bond Tax Credit, is a document used for an annual report of the tax credit amount you are allowed for every month of the calendar year. The latest version of the document was issued by the Internal Revenue Service (IRS) on December 1, 2019. This document is renewed annually and is available for download below.

Alternate Names:

  • IRS Form 1097;
  • Bond Tax Credit From.

You are required to file the IRS 1097-BTC Form if you are an issuer of a certain tax credit bond, issuer's agent, or the recipient of the Bond Tax Credit From from the bond issuer or an agent (partnership or mutual fund who further distributes the credit). The document must be filled out for every one of the following credit bonds:

  1. Qualified zone academy bonds.
  2. New clean renewable energy bonds.
  3. Qualified school contribution bonds.
  4. "Build America" bonds.
  5. Qualified energy conservation bonds.
  6. Clean renewable energy bonds.
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IRS Form 1097 Instructions

You can find detailed instructions for this form on the IRS website or by following this link. General guidelines are provided below.

File a separate form for every bond if you are an issuer or an issuer's agent. If the tax credit bond was issued with several maturities, report every maturity separately on the form. If you are the recipient of the Bond Tax Credit From the bond issuer or an agent who further distributes the credit (e.g., nominee, broker, partnership, or mutual fund), you must file only one IRS 1097 Form per account that aggregate credit from all applicable bonds. Filing instructions are as follows:

  1. The form includes three copies: Copy A is for the IRS, Copy B is for the recipient, and Copy C is for the payer. All the boxes of the form are self-explanatory.
  2. Submit the Copy A of the Form 1097 to the IRS by February 28, 2020. If you choose to file it electronically, the filing deadlines will be extended to March 31, 2020. If the due date falls on a Saturday, Sunday, or any legal holiday, file your form by the next business day.
  3. You can apply for a 30-day extension if you cannot file the bond tax credit on time. For this purpose, submit an electronic or paper version of IRS Form 8809, Application for Extension of Time to File Information Returns, before the due date.
  4. If you fail to file all the required information on time, the following penalties will be applied: $50 per form if the delay is no longer than 30 days, $110 per form if you file the correct bond tax credit by August 1, and $270 if you do not file at all or file after August 1. The maximum penalty amount can reach $3,339,000 per year. For small businesses, the maximum penalty amount will be reduced to $1,113,000 per year.
  5. You can file the form either electronically or on paper. If you file the form on paper, send the entire Copy A without cutting or separating the blank parts. The handwritten documents are acceptable, but all the entries must be accurate and legible to avoid errors during processing.
  6. The paper copy of the form must be submitted with IRS Form 1096, Annual Summary and Transmittal of U.S. Information Returns (electronic filing does not require Form 1096).

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VOID
CORRECTED
5050
FORM 1097-BTC ISSUER’S name, street address, city or town, state or
1
Total
OMB No. 1545-2197
province, country, ZIP or foreign postal code, and telephone no.
1097-BTC
Form
$
Bond
2a Code
(Rev. December 2019)
Tax
For calendar year
20
Credit
2b Unique identifier
FORM 1097-BTC ISSUER’S TIN
RECIPIENT’S TIN
3
4
Bond type
Copy A
RECIPIENT’S name
For
5a January
5b February
Internal Revenue
$
$
Service Center
Street address (including apt. no.)
5c March
5d April
$
$
File with Form 1096.
5e May
5f June
$
$
City or town, state or province, country, and ZIP or foreign postal code
5g July
5h August
For Privacy Act
$
$
and Paperwork
Reduction Act
Form 1097-BTC issuer is (check one):
5i September
5j October
Notice, see the
$
$
current General
5k November
5l December
Issuer of bond or its agent filing current year
Instructions for
Form 1097-BTC for credit being reported
$
$
Certain Information
Returns.
6
Comments
An entity or a person that received or should have received
a current year Form 1097-BTC and is distributing part or all
of that credit to others
1097-BTC
Form
(Rev. 12-2019)
Cat. No. 54293T
www.irs.gov/Form1097BTC
Department of the Treasury - Internal Revenue Service
Do Not Cut or Separate Forms on This Page — Do Not Cut or Separate Forms on This Page
VOID
CORRECTED
5050
FORM 1097-BTC ISSUER’S name, street address, city or town, state or
1
Total
OMB No. 1545-2197
province, country, ZIP or foreign postal code, and telephone no.
1097-BTC
Form
$
Bond
2a Code
(Rev. December 2019)
Tax
For calendar year
20
Credit
2b Unique identifier
FORM 1097-BTC ISSUER’S TIN
RECIPIENT’S TIN
3
4
Bond type
Copy A
RECIPIENT’S name
For
5a January
5b February
Internal Revenue
$
$
Service Center
Street address (including apt. no.)
5c March
5d April
$
$
File with Form 1096.
5e May
5f June
$
$
City or town, state or province, country, and ZIP or foreign postal code
5g July
5h August
For Privacy Act
$
$
and Paperwork
Reduction Act
Form 1097-BTC issuer is (check one):
5i September
5j October
Notice, see the
$
$
current General
5k November
5l December
Issuer of bond or its agent filing current year
Instructions for
Form 1097-BTC for credit being reported
$
$
Certain Information
Returns.
6
Comments
An entity or a person that received or should have received
a current year Form 1097-BTC and is distributing part or all
of that credit to others
1097-BTC
Form
(Rev. 12-2019)
Cat. No. 54293T
www.irs.gov/Form1097BTC
Department of the Treasury - Internal Revenue Service
Do Not Cut or Separate Forms on This Page — Do Not Cut or Separate Forms on This Page
CORRECTED (if checked)
FORM 1097-BTC ISSUER’S name, street address, city or town, state or
1
Total
OMB No. 1545-2197
province, country, ZIP or foreign postal code, and telephone no.
1097-BTC
Form
$
Bond
2a Code
(Rev. December 2019)
Tax
For calendar year
20
Credit
2b Unique identifier
FORM 1097-BTC ISSUER’S TIN
RECIPIENT’S TIN
3
4
Bond type
Copy B
RECIPIENT’S name
For Recipient
5a January
5b February
$
$
Street address (including apt. no.)
5c March
5d April
$
$
This is important tax
5e May
5f June
information and is
being furnished to the
$
$
City or town, state or province, country, and ZIP or foreign postal code
IRS. If you are required
5g July
5h August
to file a return, a
$
$
negligence penalty or
other sanction may be
Form 1097-BTC issuer is:
5i September
5j October
imposed on you if an
$
$
amount of tax credit
exceeding the amount
5k November
5l December
Issuer of bond or its agent filing current year
reported on this form is
Form 1097-BTC for credit being reported
$
$
claimed on your
income tax return.
6
Comments
An entity or a person that received or should have received
a current year Form 1097-BTC and is distributing part or all
of that credit to others
1097-BTC
(keep for your records)
Form
(Rev. 12-2019)
www.irs.gov/Form1097BTC
Department of the Treasury - Internal Revenue Service
Instructions for Recipient
hyphen and then an account number or other unique identifying
number.
Issuers of certain tax credit bonds or their agents, and recipients of
If no CUSIP number is available, the account number, or other
Form 1097-BTC from the bond issuer or agent who are further
unique identifying number by which the bond transaction is tracked by
distributing the credit, such as brokers, nominees, mutual funds, or
the issuer, is shown in box 2b.
partnerships, must report to you on at least a quarterly basis and file
C—CUSIP number
with the IRS annually on a separate Form 1097-BTC the amount of tax
credit you are allowed for each month of the calendar year.
A—Account number
Recipient’s taxpayer identification number (TIN). For your
O—Any other identifier
protection, this form may show only the last four digits of your TIN
Box 2b. Shows the unique identifier assigned by the Form 1097-BTC
(social security number (SSN), individual taxpayer identification
issuer, limited to 39 alphanumeric characters.
number (ITIN), adoption taxpayer identification number (ATIN), or
Box 3. Shows the codes for tax credit bonds that are reported on
employer identification number (EIN)). However, the issuer has
separate Forms 1097-BTC:
reported your complete TIN to the IRS.
101—Clean renewable energy bond
You will not receive a separate 4th quarter report. The
!
credits for the 4th quarter will be reported together with the
199—Other
annual aggregate total amount of allowable credits
Boxes 5a–5l. These boxes show the amount of the credit you are
furnished to you on or before the 15th day of the 2nd
CAUTION
allowed for the month during the calendar year.
calendar month after the close of the calendar year.
You may be entitled to claim a credit against your income tax
Note: The first 3 quarters reported on the annual report are duplicative
liabilities, subject to certain limitations under section 54A(c).
amounts previously reported. You are allowed to take the credit
Additionally, clean renewable energy bond credits received from a
amount from each quarter only once.
pass-through entity are limited to the income received from the pass-
The checkbox shows if the filer is the issuer of the bond or its agent,
through entity. New clean renewable energy bond and qualified
or is an entity or a person that received or should have received this
energy conservation bond credits are limited to 70% of the credit
form and is making a further distribution of the credit.
amounts determined under section 54A(b); the credit reported on
Form 1097-BTC is the credit amount after the 70% limit has been
Box 1. Shows the aggregate total of credits allowed for the calendar
applied. For more information, see Form 8912.
year.
Box 6. May show any additional information provided by the form
Box 2a. Indicates if the unique identification number is your account
issuer.
number, the CUSIP number of the bond, or another identifier. For
Future developments. For the latest information about
filings of Form 1097-BTC by the issuer of the bond or its agent (as
developments related to Form 1097-BTC and its instructions, such as
indicated by the first checkbox being checked), the first nine
legislation enacted after they were published, go to
characters of the unique identifier in box 2b must be the CUSIP
www.irs.gov/Form1097BTC.
number, if available. For further identification, if necessary or desired
by the issuer, the CUSIP number can be followed by an optional
VOID
CORRECTED
FORM 1097-BTC ISSUER’S name, street address, city or town, state or
1
Total
OMB No. 1545-2197
province, country, ZIP or foreign postal code, and telephone no.
1097-BTC
Form
$
Bond
2a Code
(Rev. December 2019)
Tax
For calendar year
20
Credit
2b Unique identifier
FORM 1097-BTC ISSUER’S TIN
RECIPIENT’S TIN
3
4
Bond type
Copy C
RECIPIENT’S name
For Payer
5a January
5b February
$
$
Street address (including apt. no.)
5c March
5d April
$
$
5e May
5f June
For Privacy Act
$
$
City or town, state or province, country, and ZIP or foreign postal code
and Paperwork
5g July
5h August
Reduction Act
$
$
Notice, see the
current General
Form 1097-BTC issuer is (check one):
5i September
5j October
Instructions for
$
$
Certain Information
5k November
5l December
Issuer of bond or its agent filing current year
Returns.
Form 1097-BTC for credit being reported
$
$
6
Comments
An entity or a person that received or should have received
a current year Form 1097-BTC and is distributing part or all
of that credit to others
1097-BTC
Form
(Rev. 12-2019)
www.irs.gov/Form1097BTC
Department of the Treasury - Internal Revenue Service
Instructions for Payer
amounts for the annual reporting and explain the correction
to the recipient; no explanation is required for the IRS filing.
To complete Form 1097-BTC, use:
For the report furnished to the recipient (quarterly or
• The current General Instructions for Certain Information
annual), you may use Copy B or your own substitute
Returns, and
statement reporting all the same applicable information
• The current Instructions for Form 1097-BTC.
(the reporting for the first 3 quarters may be furnished
electronically).
To order these instructions and additional forms, go to
www.irs.gov/Form1097BTC.
The IRS encourages Form 1097-BTC issuers to provide
the credit information to the recipient monthly, if
Filing and furnishing. Furnish the information shown on
applicable, and as soon after the end of the month in which
Copy B of this form to the recipient on or before the 15th
a credit arises as possible.
day of the 2nd calendar month after the close of the
calendar quarter in which the credit is allowed.
For filing and furnishing instructions, and to request filing
or furnishing extensions, see the current General
For the first 3 quarters, report to the recipient only the
Instructions for Certain Information Returns. To file
amounts for the months of the applicable quarter. Box 1
electronically, you must have software that generates a file
should not be completed and box 6 is optional.
according to the specifications in Pub. 1220.
You are not required to furnish a separate report solely
Need help? If you have questions about reporting on Form
for the 4th quarter because the 4th quarter amounts are
1097-BTC, call the information reporting customer service
reported with the annual filing. For the annual filing, report
site toll free at 866-455-7438 or 304-263-8700 (not toll
the credits for each month in boxes 5a–5l, report the total
free). Persons with a hearing or speech disability with
of those amounts in box 1, and complete the rest of the
access to TTY/TDD equipment can call 304-579-4827 (not
form as applicable. If any amounts previously furnished for
toll free).
the first 3 quarters need to be corrected, report the correct
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