To follow up the Exempt assignment, the correct answer was that Gary and Gladys (The Gs) were not required to file Schedule B since their taxable interest income was less than $1,500. They still need to report the $600 of taxable interest on Form 1040. For those of you noted the phrase accrued interest on bonds in the instructions, that has a different meaning which we may follow up on later. We will now turn our focus to Part III of schedule B.

Questions:

1. If the The Gs (Gary and Gladys) did not own a foreign bank account are they required to complete Part III of schedule B? This is not a trick question.

2. If The Gs did own a foreign bank account, are they required to complete part III?

3. If The Gs did not own a foreign bank account but did have $1,500 in taxable interest are they required to complete part III?

4. Explain your answers to 1-3 above.

5. Please read Viola (2018) and comment on what you have learned.

6. Do you agree with the IRSs approach about Foreign Bank Account Reporting? Explain.

7. I think there is a mistake in Violas interpretation of the $1,500. Do you agree? Explain.