Page 184 - Individual Forms & Instructions Guide

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
ment.” However, if the payer reported to If an amount is shown in box 9 of Part III. Foreign Accounts
you a net amount of OID on the bond re- Form 1099-INT, you must generally re- and Trusts
flecting the offset of the gross amount of port it on line 2g of Form 6251. See the
OID by any acquisition premium, no re- Instructions for Form 6251 at IRS.gov/ Regardless of whether you are
duction of the amount of OID income Form6251 for details. TIP required to file FinCEN Form
reported to you by the payer may be Line 3. If, during 2022, you cashed ser- 114 (FBAR), you may be re-
needed on Schedule B for the bond. ies EE or I U.S. savings bonds issued af- quired to file Form 8938, Statement of
Amortizable bond premium. If you ter 1989 and you paid qualified higher Specified Foreign Financial Assets, with
elect to reduce your interest income on a education expenses for yourself, your your income tax return. Failure to file
taxable bond by the amount of taxable spouse, or your dependents, you may be Form 8938 may result in penalties and
extension of the statute of limitations.
amortizable bond premium, follow the able to exclude part or all of the interest
rules earlier under Nominees to see how on those bonds. See Form 8815 at See IRS.gov/Form8938 for more infor-
mation.
to report the interest. But identify the IRS.gov/Form8815 for details.
amount to be subtracted as “ABP Ad- Part II. Ordinary Dividends Line 7a—Question 1. Check the “Yes”
justment.” However, if the payer repor- box if at any time during 2022 you had a
ted to you a net amount of interest in- You may have to file Form financial interest in or signature authori-
come on the bond reflecting the offset of TIP 5471 if, in 2022, you were an ty over a financial account located in a
the gross amount of interest income by officer or director of a foreign foreign country. See the definitions that
the amortizable bond premium, no re- corporation. You may also have to file follow. Check the “Yes” box even if you
duction of the amount of interest income Form 5471 if, in 2022, you owned 10% aren't required to file FinCEN Form 114.
reported to you by the payer is needed or more of the total (a) value of a for-
on Schedule B for the bond. eign corporation’s stock, or (b) com- Financial account. A financial ac-
bined voting power of all classes of a count includes, but isn't limited to, a se-
Tax-exempt interest. If you received foreign corporation’s stock with voting curities, brokerage, savings, demand,
any tax-exempt interest (including any rights. For details, see Form 5471 and checking, deposit, time deposit, or other
tax-exempt OID), such as from munici- its instructions at IRS.gov/Form5471. account maintained with a financial in-
pal bonds, each payer should send you a stitution (or other person performing the
Form 1099-INT or a Form 1099-OID. In Line 5. Report on line 5 all of your or- services of a financial institution). A fi-
general, your tax-exempt stated interest dinary dividends. This amount should be nancial account also includes a com-
should be shown in box 8 of Form shown in box 1a of your Forms modity futures or options account, an in-
1099-INT or, for a tax-exempt OID 1099-DIV or substitute statements. surance policy with a cash value (such
bond, in box 2 of Form 1099-OID, and as a whole life insurance policy), an an-
your tax-exempt OID should be shown Nominees. If you received a Form nuity policy with a cash value, and
in box 11 of Form 1099-OID. Enter the 1099-DIV that includes ordinary divi- shares in a mutual fund or similar
total on line 2a of your Form 1040 or dends you received as a nominee (that pooled fund (that is, a fund that is avail-
1040-SR. However, if you acquired a is, in your name, but the ordinary divi- able to the general public with a regular
tax-exempt bond at a premium, only re- dends actually belong to someone else), net asset value determination and regu-
port the net amount of tax-exempt inter- report the total on line 5. Do this even if lar redemptions).
est on line 2a of your Form 1040 or you later distributed some or all of this
1040-SR (that is, the excess of the income to others. Under your last entry Financial account located in a for-
tax-exempt interest received during the on line 5, put a subtotal of all ordinary eign country. A financial account is lo-
year over the amortized bond premium dividends listed on line 5. Below this cated in a foreign country if the account
for the year). Also, if you acquired a subtotal, enter “Nominee Distribution” is physically located outside of the Uni-
tax-exempt OID bond at an acquisition and show the total ordinary dividends ted States. For example, an account
premium, only report the net amount of you received as a nominee. Subtract this maintained with a branch of a United
tax-exempt OID on line 2a of your Form amount from the subtotal and enter the States bank that is physically located
1040 or 1040-SR (that is, the excess of result on line 6. outside of the United States is a foreign
the tax-exempt OID for the year over the If you received dividends as a financial account. An account main-
amortized acquisition premium for the TIP nominee, you must give the ac- tained with a branch of a foreign bank
year). See Pub. 550 for more informa- tual owner a Form 1099-DIV that is physically located in the United
tion about OID, bond premium, and ac- (unless the owner is your spouse) and States isn't a foreign financial account.
quisition premium. file Forms 1096 and 1099-DIV with the Signature authority. “Signature au-
Also include on line 2a of your Form IRS. For more details, see the General thority” is the authority of an individual
1040 or 1040-SR any exempt-interest Instructions for Certain Information Re- (alone or in conjunction with another in-
dividends from a mutual fund or other turns and the Instructions for Form dividual) to control the disposition of as-
regulated investment company. This 1099-DIV. sets held in a foreign financial account
amount should be shown in box 12 of by direct communication (whether in
Form 1099-DIV. writing or otherwise) to the bank or oth-
er financial institution that maintains the

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