Glossary

Schedule B

Schedule B reports interest and dividend income on Form 1040 and contains Part III, the questions asking whether you had a foreign financial account or received a distribution from a foreign trust.

How it works

Schedule B lists interest and dividend income and, in Part III, asks whether you had a financial interest in or signature authority over a foreign financial account and whether you received a distribution from a foreign trust. Every filer with more than 1,500 dollars of interest or dividends, or any foreign account, must complete it.

Why it matters

Courts have treated a no answer while holding foreign accounts as evidence of willfulness in FBAR cases. The question also directs filers to the FBAR requirement, which removes ignorance as a defense.

Related: willful versus non-willful, FBAR.

Guides that cover schedule B

Related terms

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Definitions are general information, not legal advice, and may not reflect the most recent changes in law.

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