Notification to Taxpayers

• Institutional payers of interest and dividends are required to report what they pay by sending you a 1099 form. There are several types of 1099s. The 1099-INT and 1099-OID are used for interest, and form 1099-DIV is for dividends. Sometimes a consolidated 1099 is used for reporting several types of payments. All the information that you need to complete Schedule B is available in these forms.
  
  

Schedule B Layout

• Schedule B has three parts. Part I is for reporting interest, part II is for dividends, and part III requires you to certify whether any reported payments came from foreign accounts.
  
  

Interest (Part I)

• In this section list the name of each payer and enter the amount of the payment received in the column to the right. Do not include any tax-exempt interest identified as such in the 1099 form. Total the taxable interest payments received in line 2. Report interest on the specified series of U.S. Savings Bonds separately on line 3. If you hold these bonds you will need to also file form 8815.
  
  For payments of interest from an individual, enter the name of the payer. If the payments were for interest on a mortgage you carried on a property you sold, and the buyers used the property as their residence, you must identify the payer with their name, address and social security number.
  
  Tax exempt interest is reported as a separate amount on form 1040 but is not listed separately on the Schedule B.
  
  

Dividends (Part II)

• List ordinary dividends on line 5 and total them on line 6.
  
  Ordinary dividends are those that are paid out of a corporation's earnings and are normally what individuals receive from their stock or mutual fund holdings.
  
  Qualified dividends are reported as a separate amount on form 1040 but they are not listed separately on the Schedule B.
  
  

Foreign Accounts (Part III)

• If the total payment you listed in either Part I or Part II is more than $1500, then complete Part III of Schedule B. It asks whether you held an interest in foreign securities. If so you may have to file forms 3520, 3520-A, or TD F 90-22.1. Refer to the directions for these forms to determine whether they are required.