Question

Schedule B, Part III, Foreign Accounts and Trusts, must be completed if any of the following apply EXCEPT

a. The taxpayer had more than $1,500 of taxable interest or ordinary dividends
b. The taxpayer had a foreign account
c. The taxpayer received a distribution from a foreign trust
d. The taxpayer is claiming the exclusion of interest from series EE savings bonds

Answer 1

Schedule B, Part III, Foreign Accounts and Trusts, must be completed if any of the following apply EXCEPT:

a. The taxpayer had more than $1,500 of taxable interest or ordinary dividends

c. The taxpayer received a distribution from a foreign trust

d. The taxpayer is claiming the exclusion of interest from series EE savings bonds

The exception to completing Schedule B, Part III, is option b. The taxpayer had a foreign account. If the taxpayer does not have a foreign account, then Schedule B, Part III, does not need to be completed. However, if any of the other options (a, c, or d) apply, then the taxpayer must complete Schedule B, Part III.