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 for you 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 a 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 for the form are as follows:
- The form includes three copies: Copy A is for the IRS, Copy B is for a recipient, and Copy C is for a Payer. All the boxes of the form are self-explanatory;
- 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;
- 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 the Form 8809, Application for Extension of Time to File Information Returns before the due date;
- 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;
- 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;
- The paper copy of the form must be submitted with the Form 1096, Annual Summary and Transmittal of U.S. Information Returns (electronic filing does not require Form 1096).
IRS 1097 Related Forms
There are several documents related to Form 1097: