Form 1097-BTC

What Is IRS Form 1097 BTC (Bond Tax Credit)

IRS Form 1097 BTC reports the amount of bond tax credit a taxpayer is eligible to receive when they purchase qualified tax-exempt bonds. This credit reduces the amount of taxes owed on the bond income.

Who should fill out a 1097 BTC form

The Form should be filed by: 

• Corporations that are the original issuers of tax-exempt bonds.
• Financial institutions that purchase or acquire bonds.
• Individuals who purchase, acquire, or dispose of them.

How to Fill Out IRS Form 1097-BTC

To fill out Form 1097-BTC, you will need to know the following information:

Step 1: Enter the name, address, and taxpayer identification number (TIN) of the issuer and recipient. 

Step 2: In box 1, include the total number of credits given to the recipient based on what was shown in boxes 5a–5l for the current calendar year. This field is only necessary when submitting Copy A of the form and providing the annual statement (Copy B of the form) to the receiver.

Step 3: In box 2, provide a unique identification number. If it is a CUSIP number, type in "C"; if it is an account number, type in "A"; any other type of number, such as a self-provided identification number, should be entered as "O."

Step 4: Enter a unique identifier into a box 2b. 

Step 5: Write a bond type:

• “101” for renewable energy bonds;
• “199” for all other bonds.

Step 5: Calculate and enter bonds amount for each month of the year in boxes 5a-5l.

Once you have gathered all the necessary information, you can fill out the form. Be sure to double-check your entries to make sure they are accurate. When you have completed the form, you should file it with the IRS and recipient. You can file the form to the recipient by splitting the document and sending the Copy B by Email.

Organizations that work with 1097-BTC form

IRS