Schedule B—Income From Tax-Exempt Obligations

If, at the close of each quarter of the tax year, at least 50% of the value of the RIC’s assets consisted of tax-exempt obligations under section 103(a), the RIC qualifies under section 852(b)(5) to pay exempt-interest dividends for the tax year. See section 852(b)(5)(A) for the definition of exempt-interest dividends and other details.

In the case of a qualified “fund of funds” structure, a RIC may pay exempt-interest dividends without regard to the requirement that at least 50% of the value of the fund’s assets consist of tax-exempt obligations. See section 852(g) for more information.

If this applies, check the “Yes” box on line 1 and complete lines 2 through 5.