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From Instructions for Form 1099-Misc: http://www.irs.gov/instructions/i1099msc/ar02.html#d0e900 Self-employment tax. Generally, amounts reportable in box 7 are subject to self-employment tax. If payments to individuals are not subject to this tax and are not reportable elsewhere on Form 1099-MISC, report the payments in box 3. However, report section 530 (of the Revenue Act of 1978) worker payments in box 7. Examples. The following are some examples of payments to be reported in box 7. Professional service fees, such as fees to attorneys (including corporations), accountants, architects, contractors, engineers, etc. Fees paid by one professional to another, such as fee-splitting or referral fees.

I couldn't even create one. But I rebooted everything & it fixed.

And when in doubt, on that one, answer YES. As my mother told me about whether clothes needed to be washed, "If it's doubtful, it's dirty."

JJ It will take them a while before they decide what is what. Probably well after 2015 filing's. For myself, I am going to renew as soon as IRS.gov opens the PTIN section for 2015 (currently just 2014 is active). The same goes for NY registration as a preparer --- as soon as they get their act together and define what is CE acceptable and "open" registration for 2015, I am going to renew (my NY returns are less than 10, so there is no cost here --- except for CE cost (which hopefully will be federal CE and NOT state specific). How does CA preparer registration work --- are the CE's for fed's considered CE's for CA or are there specific CE's for CA only?

Your client is a shareholder and owns a foreign asset, not a foreign account. If it throws off foreign income, that has to be reported. The 8938 and 5471 take care of the foreign reporting requirements. There is no question on Sch B that you can answer affirmatively. (Those are aimed at Swiss bank accounts and Cayman Island trusts and their cousins.) Signature authority has nothing to do with it. That only applies to trusts and maybe some other weird financial setups.

I've always understood it to be the opposite. If someone has signatory authority over a foreign account, they must answer the questions and attach schedule B even if there is little or even no income from Interest or Dividends. It would be interesting to hear others' thoughts on this. As for the original question, I think he must answer "Yes" even though the account isn't in his name. Here are the instructions for Schedule B. (Notice the last one -> I understand each to be a stand-alone condition) Purpose of Form Use Schedule B if any of the following applies. • You had over $1,500 of taxable interest or ordinary dividends. • You received interest from a seller-financed mortgage and the buyer used the property as a personal residence. • You have accrued interest from a bond. • You are reporting original issue discount (OID) in an amount less than the amount shown on Form 1099-OID. • You are reducing your interest income on a bond by the amount of amortizable bond premium. • You are claiming the exclusion of interest from series EE or I U.S. savings bonds issued after 1989. • You received interest or ordinary dividends as a nominee. • You had a financial interest in, or signature authority over, a financial account in a foreign country or you received a distribution from, or were a grantor of, or transferor to, a foreign trust. Part III of the schedule has questions about foreign accounts and trusts.