To follow up the Exempt assignment, the correct answer was that Gary and Gladys (The G's) 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 G's (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 G's did own a foreign bank account, are they required to complete part III? 3. If The G's 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