Appendix B: Frequently Asked Questions

FAQs: Annuity (fixed)

1. What do I select for the “Excepted Investment Fund” field?

A fixed annuity is not an investment fund and has no underlying holdings. Instead, a fixed annuity is a debt obligation of the issuing company. For this reason, select “N/A.”

2. How do I value a fixed annuity?

You may use the annuity’s face value, the company’s estimate of the current value, or the value of premiums paid plus accrued income.

FAQs: Award or Prize

1. I own a frog that won the prize in a jumping contest in Calaveras County. Do I report the winnings?

Yes.

2. I won a prize for public service. Do I report the winnings?

Yes.

FAQs: Bond (corporate)

1. If the bond matured and was redeemed during the reporting period, should I still report the bond?

In that event, the bond is reportable if more than $200 in income (usually interest income) was received during the reporting period. If the bond has already matured, the value will be “None (or less than $1,001).” (Note that, if you sold the bond before its maturity date, you may have both interest and capital gains to report.)

2. I’m not sure how to calculate the income from a corporate bond. Do you have a suggestion?

Filers are required to make a good faith effort to calculate the amount of interest received. You may find the information in an IRS Form 1099 or in a brokerage account statement. Otherwise, you may be able to estimate the amount of interest during a reporting period by apportioning the difference between the purchase price and the maturity value over the bond’s term. (It is not sufficient to state a bond’s series or interest rate.)

3. I have some preferred securities. Do I report them as stock or bonds?

First, verify the specific type of asset that you hold. Generally, “preferred security” will refer to shares of preferred stock, which should be reported using the instructions for stock. However, you might also hold a portfolio of preferred securities, and, in that case, the reporting requirements will depend on the type of investment fund used to hold that portfolio. The bond instructions are not applicable because, despite an income payout structure that seems similar to a bond, preferred securities are not mere debt instruments.

FAQs: Bond (municipal)

1. What are municipal bonds?

Municipal bonds, often called munis, are debt obligations of states, cities, counties, or other political subdivisions of states in the United States.

Two common types are:

• general obligations (GOs), used for general expenditures and backed by the issuer’s full faith and credit (taxing and borrowing power); and
• revenue bonds (REVs), used to finance specific public service projects and backed by cash flow from those projects. Examples are bonds to finance bridges, turnpikes, tunnels, water and sewer systems, schools, power plants, prisons, transportation systems, hospitals, sports complexes, and airports.

Like other debt obligations, municipal bonds may be issued at a discount as zero coupons. They may also be stripped like Treasuries and sold and backed by investment brokers.

2. What are some other varieties of municipal securities?

Other varieties of municipal securities include tax bonds, tax anticipation notes (TANs), and revenue anticipation notes (RANs), which are obligations sold in anticipation of general or specific tax receipts or other income that the issuing government entity expects to collect.

3. How are industrial development bonds different from other types of municipal bonds?

As a means of attracting business to a community, a local government may issue a type of revenue bond called an industrial development bond (IDB) to finance construction of facilities for lease to a private corporation. The private company backs these securities, so the bond holder has a financial tie to that company, as well as to the issuing government authority.

4. How do I value a municipal bond?

You may use any one of the following options:

• the bond’s maturity value;
• the value as shown on an account statement at the end of the reporting period;
• the current market value; or
• a good faith estimate if the exact value cannot be obtained without undue hardship or expense.

FAQs: Bonus

1. I received salary and a cash bonus from the same source. Can I combine these?

Yes, you may report salary and a cash bonus in a single entry. Write the phrase “salary and bonus” in the “Income Type” field. Be sure to provide the combined amount of your salary and bonus.

However, you may not combine salary and a bonus receivable (i.e., a bonus you have not yet received). Also, do not combine salary and a bonus in the form of stock options, restricted stock, or other equity. Do not combine salary and deferred compensation.

2. I received my bonus in the form of stock options. How should I report this?

Follow the instructions for an Option (incentive stock option plan) or Warrant.

3. I have an outstanding bonus that I have not yet received. Do I have to receive this bonus prior to beginning government service?

Some bonus may pose no issues. However, the answer to this question may depend on an analysis of a criminal statute, 18 U.S.C. § 209. The payment also may implicate 5 C.F.R. § 2635.503, regardless of whether it is received before or during Government service. If you have an outstanding bonus that you have not received, you should be sure to discuss this issue with your ethics official before you receive the payment.

FAQs: Brokerage Account

1. Why doesn’t my brokerage account qualify as an excepted investment fund?

A brokerage account is not an investment fund, which means that the account can never be an excepted investment fund. In addition, most brokerage accounts would not satisfy the various elements of the excepted investment fund test, even if they were investment funds.

2. All of the dividends and capital gains within my account are reinvested into other assets. Do I have to report these dividends and capital gains as income?

Yes. Similar to how these dividends and capital gains are treated for purposes of federal income tax, you have to report the dividends and capital gains as “received” income for purposes of public financial disclosure. The only exception would be if the brokerage account itself is tax-deferred (e.g., this is an account for your IRA). In the event your account is tax-deferred, please see the instructions in this guide applicable to the type of tax-deferred account that you have.

FAQs: Cash Account

1. I have several cash accounts at a local bank. How should they be listed in my report?

Aggregate any cash accounts you have in a single financial institution and report them in Part 6 if they exceed $5,000. For example, if you have $2,000 in a money market account, $3,500 in a savings account, and a $5,000 certificate of deposit in Commerce Bank, identify the assets as “U.S. bank (cash)” in Part 6. Select a category of value for the aggregate value of the accounts. In the example above, the aggregate value is $10,500, so you would select the “$1,001 - $15,000” category. You would also select a category of value for the amount of interest income received during the reporting period.

2. What is the difference between a money market account and a money market fund?

A money market account is treated as a cash account for filing purposes. A money market fund is a type of mutual fund (see the “Money Market Fund” entry).

3. How do I report a sweep account?

Report the sweep account as “U.S. brokerage account (cash).”

4. Do I need to report my checking account?

You need to report an interest-bearing checking account in the same manner that you would report other cash accounts.

5. I have physical holdings of cash in a safe deposit box. Do I report that?

You do not have to report currency held in the form of paper currency or coins, unless the currency is held for investment or the production of income (e.g., a collection of antique currency from which sales are made).

FAQs: Collectible Item

1. How do I know whether a collectible item is “held for investment purposes”?

Household furnishings and paintings displayed for decorative or artistic purposes would not normally be considered collectible items held for investment. However, if you purchased a collectible for the purpose of realizing a gain upon sale or if you subsequently began treating a set of collectibles as a source of income, then the collectibles would be reportable, subject to the value and income thresholds.

Periodic sales from a collection of artwork would indicate that the collection is held for investment purposes. Similarly, acquiring a collectible with a group of investors would generally indicate an investment purpose. Absent any prior sales or other documented steps that signal an investment purpose, reporting would depend on your own sense of why you hold the collectible.

If you are unsure whether a collectible item should be reported, consult your ethics official.

2. How do I value a collectible item?

You may use a recent purchase price, a recent appraisal for insurance purposes, a published price guide, the recent sale price of similar items, or a good faith estimate.

FAQs: College Savings Plan (529 plan)

1. My parents established a 529 plan for my dependent child. Do I have to report the 529 plan?

No. The account is considered the property of your parents.

2. I established a 529 plan for my grandchild. Do I have to report the 529 plan?

Yes, if the total value was more than $1,000 at the end of the reporting period or if you received a distribution or withdrawal of more than $200 during the reporting period. You do not need to report distributions or withdrawals made to your grandchild or to an educational institution for your grandchild’s benefit because the distribution/withdrawal is viewed as your grandchild’s income.

FAQs: Contingency Fee

1. Can I enter into an agreement with my law firm to receive a portion of contingency fees in a case in which the United States is a party or has a direct and substantial interest?

No. Government employees are precluded by federal criminal law from keeping an interest in such cases. For further guidance, see the Analyzing Conflicts of Interest guidance documents, which are available on OGE’s website.

FAQs: Deferred Compensation

1. Am I permitted to receive a payment of deferred compensation after I enter government service?

The answer to this question depends on your personal circumstances. However, the one answer that applies to all filers is that you should seek advice from an agency ethics official before receiving the payment.

2. What if the terms of my separation have not been finalized and will affect what I receive under the deferred compensation plan?

In most cases, you will need to finalize these terms before completing your financial disclosure report and before entering government service. You also should obtain advice from your agency ethics official. It is important that you contact your agency ethics official as soon as possible to learn about any ethics laws that will be applicable to your deferred compensation payment after you enter government service.

3. What if my agency decides that I must exit a deferred compensation plan to resolve a conflict of interest under the government’s ethics laws, but my employer raises concerns about compliance with 26 U.S.C. § 409A (sometimes referred to as “409A”)?

Neither the U.S. Office of Government Ethics nor your agency’s ethics officials can provide you (or your employer) with tax advice. You may want to consult with your tax advisor. In that case, you may want to ask your tax advisor whether 26 C.F.R. § 1.409A-3(j)(4)(iii) is relevant to your situation.

FAQs: Defined Benefit Plan (including cash balance pension plan)

1. Do I report my defined benefit plan with the United States Government?

No. You do not need to report participation in a United States Government retirement plan (e.g., CSRS or FERS).

2. I am not yet vested in my defined benefit plan. Do I need to report my plan interest?

Usually, yes. Even though the plan interest is unvested, your participation does have some value at present.

If you make contributions to the plan, you can value the plan by selecting the “Value” category that matches the value of your own contributions to the plan. Defined benefit plans typically provide participants with statements that list a plan balance or withdrawal figure. If not, the plan sponsor typically can provide this information. If you cannot ascertain the value of your contributions or if you do not make contributions to the plan, write “(unvested) (value not readily ascertainable)” in the Description field.

Unvested Defined Benefit Plan – Participant contributions readily ascertainable

Unvested Defined Benefit Plan – No participant contributions or contributions not readily ascertainable

FAQs: Defined Contribution Plan (including a money purchase pension plan)

1. Do I report my federal Thrift Savings Plan (TSP) account?

No. Do not report participation in a United States Government retirement plan.

2. I was not required to report my defined contribution plan in Part 2 because all of the underlying assets were below the value threshold and I am not receiving distributions. Do I still report my defined contribution plan in Part 3?

Yes. Part 2 and Part 3 have different and independent reporting thresholds. Continued participation in a defined contribution plan is reportable in Part 3, regardless of the value of the underlying assets.

3. All of the underlying assets of my defined contribution plan are below the value threshold and I am not receiving distributions; however, I still want to report the plan in Part 2. How would I do that?

This over reporting is not necessary. However, you would report this plan as follows:

Description: Provide the name of the employer. Write “defined contribution plan” or specify the type of defined contribution plan, such as “401(k)” or “403(b).” Following that general description, write “underlying assets below reporting thresholds.”

Value: Select the category that corresponds to the value of your interest in the overall plan.

Income Amount: Select the category for “None (or less than $201).”

Note that OGE does not treat tax-deferred income accruing within a retirement plan as having been received because of the limitations on withdrawal and other regulatory requirements governing such plans. You, however, would report distributions as having been received.

4. When I report my retirement account distributions, may I subtract the cost basis?

For purposes of measuring the amount of income received, you may subtract from the distribution any portion that constitutes an investment into the plan. In most cases, though, filers will find it easiest to use the total amount of a distribution during the reporting period.

FAQs: Director Fee

1. Do I report my annual director fees or the total amount of income from director fees received during the reporting period?

Report the total amount of income from director fees that you received during the entire reporting period, not just the amount that you received in a calendar year.

2. What if I am paid in equity or an equity-related interest, rather than in cash?

Report the equity or equity-related interest that you hold. Normally, you do not need to report the value of the asset a second time in the “Income Amount” field, even if you paid “ordinary income” tax upon receipt or vesting of the asset. However, if you have already sold, forfeited or otherwise disposed of the asset, report the director fees as income by reporting the value of the payment for this asset in the “Income Amount” field and by identifying the payment as “director fees” in the “Income Type” field. This will ensure that the form captures your receipt of the asset, even if you no longer hold it.

3. What if my director fees are deferred?

Report your financial interest in these deferred fees as a receivable. In the “Description” field, describe the nature of your financial interest as “deferred director fees” and specifically identify the form that the fees will take (e.g., “receivable: Wilson Widgets stock,” “cash receivable,” etc.). In the “Value” field, report the value of this financial interest. Leave the “Income Type” field blank and select “None (or less than $201)” in the “Income Amount” field because you have not yet received this payment, unless you have received dividends or similar payments (e.g., dividend equivalent units).

Normally, you do not need to report the value of the asset a second time in the “Income Amount” field. However, if you have already sold, forfeited or otherwise disposed of this financial interest, report the director fees as income by reporting the value of the payment for this asset in the “Income Amount” field and by identifying the payment as “director fees” in the “Income Type” field. This will ensure that the form captures your receipt of the asset, even if you no longer hold it.

4. What if my director fees take a different form than those discussed in Questions 2 and 3 above?

If you have questions about how to report a complex financial arrangement such as this, contact your agency’s ethics official for guidance. Also, you may be able to extrapolate the proper reporting method from the answers to Questions 2 and 3. The most important thing is to be sure the financial interest or the director fee is captured in some way in the report. Later, your ethics official can work with you to ensure proper reporting before you finalize your report.

FAQs: Employee Stock Purchase Plan

1. The sale of stock that I purchased under my company’s employee stock purchase plan produced ordinary income. How do I report that income?

Generally, the sale of stock would produce a capital gain or loss. However, in some situations, the sale of stock acquired through an employee stock purchase plan may produce ordinary income as well.

In these cases, report the exact amount of ordinary income in the “Income Amount” field. Describe the income in the “Income Type” field as “option exercise, ordinary income” and identify the stock by name.

FAQs: Exchange-Traded Fund (ETF)

1. What is an excepted investment fund (EIF)?

The following link will take you to the definition for “excepted investment fund”: click here.

2. Am I required to provide a ticker symbol?

Providing a ticker symbol will expedite the approval of your report, but a ticker symbol is not required if you are unable to find the ticker symbol. Regardless of whether you provide the ticker symbol, you need to provide the full name of the fund.

FAQs: Farm (or farmland)

1. Should I report the exact number of acres, average bushels of a particular crop, or the number (head) of livestock?

No, you do not need to report that information.

2. Should I report loans to me or the farm that are directly related to farming activities?

Report any loans for which you, your spouse, or a dependent child is personally liable. You do not need to report any liability owed by a separate entity (e.g., LLC), unless you, your spouse, or a dependent child also has a present, personal liability.

3. Should I report a mortgage on farmland?

Report any mortgage for which you, your spouse, or a dependent child is personally liable. You do not need to report any mortgage owed by a separate entity (e.g., LLC), unless you, your spouse, or a dependent child also has a present, personal liability.

FAQs: Farm (or farmland)

1. Should I report the exact number of acres, average bushels of a particular crop, or the number (head) of livestock?

No, you do not need to report that information.

2. Should I report loans to me or the farm that are directly related to farming activities?

Report any loans for which you, your spouse, or a dependent child is personally liable. You do not need to report any liability owed by a separate entity (e.g., LLC), unless you, your spouse, or a dependent child also has a present, personal liability.

3. Should I report a mortgage on farmland?

Report any mortgage for which you, your spouse, or a dependent child is personally liable. You do not need to report any mortgage owed by a separate entity (e.g., LLC), unless you, your spouse, or a dependent child also has a present, personal liability.

FAQs: Foreign Exchange Position (“forex”)

1. I traded currency futures as well. Should I report those positions as foreign currency?

If you traded currency futures, you should refer to the “Futures Contract” entry for examples and instructions on how to report a futures position. Similarly, see the “Option (put or call purchased)” and “Option (put or call written)” entries for instructions on how to report currency options.

2. If I have income from a profitable currency trade and I have received interest income on the position, how do I report this income?

Aggregate the profit and the interest income and, if the total is greater than $200, select the appropriate “Income Amount” category. Also, select the “Income Type” categories corresponding to capital gains and interest income.

3. If I engaged in a series of trades involving the same currency pair, can I aggregate them in a single entry in my financial disclosure report for that currency pair?

Yes. You may aggregate all positions for the same currency pair and treat them as a single entry in your financial disclosure report. If you have a series of closed positions and still maintain open positions, remember to select the category of value that corresponds to the value of the open positions.

4. I have a foreign bank account (i.e., deposit account denominated in a foreign currency). How do I report that account?

Follow the instructions for cash accounts in this guide.

5. I have physical holdings of foreign currency in a safe deposit box. How do I report that?

You do not have to report foreign currency held in the form of paper currency or coins, unless the currency is held for investment or the production of income.

6. I have an interest in a currency swap. How do I report this?

The reporting requirements will depend on the exact nature of the interest. Please consult your agency ethics official for additional guidance.

7. Do I report transactions for my foreign exchange positions?

You would need to report these transactions in an Annual, Termination, or Periodic Transaction report. Transactions are reported in Part 7 of the OGE Form 278e for an Annual or Termination report. Periodic Transaction reports are completed using the OGE Form 278-T. In the interest of clarity, OGE recommends that you leave the “Type” field blank and instead specify the type of transaction by writing “opened position” or “closed position” in the “Description” field.

FAQs: Futures Contract

1. How should I value my futures contracts?

You could value your futures position as the fair market value of the underlying commodities. This would equate to the closing price of the future multiplied by the contract size multiplied by the number of contracts you control.

If fair market value information is not readily available, you may choose to provide the following information in the “Description” field: (1) the contract month and year; (2) the number of contracts you control; (3) the closing price of the future; and (4) the notation “(value not readily ascertainable).” For example, you could write, “Silver futures (value not readily ascertainable): December 2019, 10 contracts, $32.20/oz.”

2. What do I report for income?

Income from futures contracts will take the form of capital gains and should be reported by selecting “capital gains” in the “Income Type” field. Use the amount provided by your broker to determine the applicable category in the “Income Amount” field. It is our understanding that you will realize your gains (or losses) upon exiting your futures position.

3. I have an interest in several forward contracts. How do I report this interest?

Although similar to futures contracts, forward contracts are not exchange-traded and do not have standard terms. The reporting requirements, therefore, will depend on the exact nature of the forward contracts. Please consult your agency ethics official for additional guidance on how to report your forward contracts.

4. Do I report transactions for my futures trading?

You would need to report futures trading in an Annual, Termination, or Periodic Transaction report. Transactions are reported in Part 7 of the OGE Form 278e for an Annual or Termination report. Periodic Transaction reports are completed using the OGE Form 278-T. In the interest of clarity, OGE recommends that you leave the “Type” field blank and instead specify the type of transaction by writing “opened position” or “closed position” in the “Description” field.

FAQs: Future Employment Arrangement

1. What if my arrangement is not a formal agreement?

If you have any sort of arrangement for prospective future employment, formal or otherwise, it is very important that you discuss this arrangement with your agency’s ethics officials because such an arrangement is likely covered by the primary federal criminal conflict of interest statute, which means you may need to take certain steps to avoid conflicts of interest that are subject to criminal penalties. You also would report any such arrangement in Part 3 of your financial disclosure report.

FAQs: Gambling Winnings

1. In valuing my winnings or in determining whether the winnings meet the reporting threshold, may I subtract amounts that I lost?

No. Report the exact gross amount of any winnings over $200 that you received, regardless of the amount you lost.

2. I won a car in a raffle. How do I report that?

In the “Income Type” field, write “raffle winnings” and provide the fair market value of the new car in the “Income Amount” field. You may elect to identify the item won as a car in the “Description” field, but you need not do so.

FAQs: Gifts and Travel Reimbursements

1. How do I value a gift?

Report the fair market value of the gift. For financial disclosure purposes, this is the retail cost to buy the gift. If you cannot find the market value of the same item, you may estimate its value by referencing the retail cost of similar items of like quality. If items of like quality are not readily available in the market, you may make a good faith estimate.

2. Why are the reporting thresholds set at $192 and $480?

The Ethics in Government Act ties the reporting thresholds for gifts and travel reimbursements to the definition of “minimal value” for purposes of gifts under the Foreign Gifts and Decorations Act (5 U.S.C. § 7342(a)(5)). The General Services Administration redefines “minimal value” under the Foreign Gifts and Decorations Act every three years. As of the last revision date of the guide (November 2024) the thresholds are $192 and $480.

3. How do I value a gift of free attendance at an event?

If you received a ticket to the event, use the face value of the ticket. Do not exclude the value of food and beverages.

To value free attendance at an event in a skybox or private suite, take the value of the most expensive publicly available ticket to the event and add in the market value of food, beverages, entertainment, and other tangible benefits provided to you in excess of what would have been provided through the publicly available ticket.

If no fee was charged to any attendee, value a gift of free attendance by using the market value of food, beverages, entertainment, and other tangible benefits offered to attendees. The market value of these items is based on the cost you would have incurred to obtain similar items at a comparable location or event.

You may wish to consult an ethics official at your agency for additional guidance.

4. Do I report travel reimbursements for official travel?

No. However, report any travel payments received under the Government Employees Training Act (5 U.S.C. § 4111).

5. Three people contributed to a single gift worth $500. Do I have to report that gift?

Yes. A gift from a group of individuals is considered a gift from a single source for purposes of the $480 and $192 thresholds. You, therefore, cannot apportion the value of the gift among the three donors and use the $192 exception. List each person in the “Source Name” column and report the total value of the gift.

6. I received four tickets to an event. Each ticket has a face value of $125. Do I have to report the tickets as a single gift worth $500 or can I exclude the tickets from reporting because each ticket is worth less than $192?

Report the tickets as a single gift.

7. Gifts from relatives are not reportable. Who counts as a “relative”?

The Ethics in Government Act defines the term “relative” for purposes of financial disclosure (5 U.S.C. § 13101(16)). The term includes people related to you as: father, mother, son, daughter, brother, sister, uncle, aunt, great uncle, great aunt, first cousin, nephew, niece, husband, wife, grandfather, grandmother, grandson, granddaughter, father-in-law, mother-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law, stepfather, stepmother, stepson, stepdaughter, stepbrother, stepsister, half brother, half sister, or the grandfather or grandmother of your spouse. The term also includes a fiancé or fiancée.

8. What qualifies as a “suitable memento” of a function honoring me?

The reporting exclusion for “suitable mementos of a function honoring the reporting individual” covers items that serve to remind you of the event, whether a mere souvenir or something with a utilitarian purpose. It is not limited to items of nominal intrinsic value because the basic gift reporting threshold already excludes items worth no more than $192, or $480 in the aggregate from a single source. An “honoring function” might include a retirement party, personal achievement dinner, or other similar event.

Despite its apparently broad scope, however, this reporting exclusion for mementos is limited by the term “suitable.” Whether a memento is “suitable” to a particular function depends on the circumstances surrounding the event, such as the types of gifts traditionally given or considered appropriate on such occasions, your position and relationship to the donors, the number of donors, and the gift’s significance to the occasion.

Because the applicability of this exclusion depends on the particular circumstances, you may wish to consult with your agency ethics official for additional guidance.

9. My spouse has been invited to a work-related event, and I will attend as my spouse’s guest. Do I have to report this gift?

Gifts given to your spouse because of your spouse’s employment or other activities may sometimes benefit you. This might occur, for example, when your spouse’s employer sponsors an event to which its employees may bring a spouse or other guest. You do not need to report these gifts so long as the gifts were given because of your spouse’s activities and were not intended to benefit you specifically or to benefit you as a United States Government employee (e.g., the “plus-one” invitation cannot be limited to any spouses who are Government employees).

10. A prospective employer has paid for my travel to an interview. Do I have to report the travel arrangements as a gift or reimbursement?

Yes, if the travel arrangements meet the disclosure requirements of the general rules for gifts and travel reimbursements. There is no specific reporting exclusion for items received from a prospective employer.

11. Do I report gifts received by a legal defense fund established for my benefit?

Yes. Report gifts to a legal defense fund totaling more than $480 from a single source that were received during the reporting period for a fund established for your benefit. Aggregate all reportable donations from the same source and report if the total exceeds $480.

Source Name: Provide the identity of the source of the gift to the legal defense fund.

City/State: Provide the source’s city and state of business or residence.

Brief Description: Describe the nature of the gift and specify the fund to which the donation was made.

Value: Provide the fair market value of the gift(s). If the gift is a cash donation, provide the exact amount.

12. Do I report gifts distributed to me by a legal defense fund that was established for a small class of recipients?

Yes. Report gifts totaling more than $480 that were distributed to you during the reporting period by a legal defense fund that was established for a small class of recipients. The gift may be reported in such a manner provided that there is independent, public reporting by the fund of donations to the fund totaling more than $480, including donor names, the city/state of the donors, and the value of the donations.

Source Name: Provide the name of the legal defense fund.

City/State: Provide the city and state in which the legal defense fund was established.

Brief Description: Describe the nature of the gift and provide a description of where to locate additional reporting information.

Value: Provide the fair market value of the gift(s). If the gift is a cash distribution, provide the exact amount.

13. I am a special Government employee who files a public financial disclosure report. As part of my primary, non-federal employment, I travel frequently, and my non-federal employer pays for my travel expenses. Do I need to report these payments as travel gifts or travel reimbursements?

No. OGE considers these travel payments an expense of the business that employs you rather than a gift or travel reimbursement to you personally.

14. I traveled to give a speech in my personal capacity, and the sponsor paid for the cost of my travel. Do I need to report this payment as a travel gift or travel reimbursement?

Yes. Unlike the case of payments related to one’s employment, OGE considers payments related to a speech to be a personal gift or travel reimbursement that a filer must report according to the same rules applicable to all other gifts and travel reimbursements.

FAQs: Honorarium

1. I received a $150 honorarium from a university in June of this year and a $100 honorarium from the same university in August of this year. Are these honoraria reportable?

Yes. The honoraria are reportable because the aggregate amount is greater than $200 from the same source during the reporting period.

2. How do I treat travel expenses that were paid for by a source?

In calculating the amount of an honorarium, subtract any actual and necessary travel expenses incurred by you and one relative. If the expenses were paid for or reimbursed by the source, do not count the payment/reimbursement as part of the honorarium that you are reporting in Part 2.

If you paid the expenses without reimbursement, subtract these expenses from the amount of the honorarium that you are reporting in Part 2.

For purposes of this rule, “travel expenses” means the cost of transportation and the cost of lodging and meals.

3. Do I count my agent’s fees when calculating my honorarium?

No. You may subtract agent’s fees.

4. Do I report payments that I donated or directed to charity?

Yes. If you wish, you may note that the payment was donated or directed to charity in Part 2.

5. How do I report honoraria that I received through a speakers’ bureau?

Report each source of honoraria in excess of $200 as a separate line entry in Part 2. For example, if you gave $500 speeches at three universities through ABC Speakers’ Bureau, report all three sources in Part 2. You do not need to report the speakers’ bureau, unless you received a separate payment from the speakers’ bureau itself (e.g., a signing bonus or retention payment).

6. How do I report honoraria that I received through my limited liability company?

Report each source of honoraria in excess of $200 as a separate line entry in Part 2. For example, if you gave $500 speeches at three universities through Nowak Appearances, LLC, report Nowak Appearances, LLC, and all three sources in Part 2.

For example:

7. I am an employee of an organization. I gave a speech at an event on behalf of the organization, and the organization was paid for providing a speaker. The payment was income of the organization and not my personal income. Accordingly, I did not pay taxes or take a deduction related to this payment. Do I need to report this payment in Part 2 of my financial disclosure report, as an honorarium or as any other form of income?

Under these specific circumstances, you do not need to report the payment as an honorarium or as any other form of income in Part 2. As you explained, this payment was income of the organization and not your personal income.

If you are a Nominee or New Entrant filer, you report this payment in Part 4, which collects information about payments made to your employer for your personal services, if the total amount received by the employer exceeded $5,000 in a calendar year during the reporting period. (Note: Candidate, Annual, and Termination filers do not complete Part 4.)

Note, however, that the answer is different if the organization is a flow-through entity, such that you eventually receive the payment indirectly through the entity. In that case, you would be required to report the payment in Part 2 and Part 4. Likewise, in the case of a speakers’ bureau that accepts the payment and later pays you all or substantially all of the payment, you are required to report the payment in Part 2 and Part 4.

8. Do I report an honorarium from the U.S. Government?

Yes. There is a Part 2 and Part 5 reporting exclusion for income received from U.S. Government employment; however, an honorarium would not be from “employment.” Report honoraria from the U.S. Government in Part 2 and Part 5 as you would report honoraria from any other source.

Note, however, that you would not need to report the department/agency in Part 4, even if the amount of the honorarium was in excess of $5,000. The difference in treatment stems from how the Ethics in Government Act defines the reporting exclusions with reference to Part 2/Part 5 and Part 4.

FAQs: Inherited IRA or Roth IRA 

1. When I inherit an IRA do I have to report that as a transaction? 

No, an inheritance is not a purchase, sale, or exchange. 

FAQs: Intellectual Property

1. I created a LLC to hold all of the copyrights on my books. Do I just report the LLC or do I need to itemize each book?

Report your LLC on one line in Part 2 and then report each book on a separate line underneath the LLC.

2. I self-published my book. How do I report that?

Unless you received $200 or less during the reporting period AND you reasonably believe the present discounted value of all future income is no more than $1,000, report the following:

Description: Provide the name of the book, note the book is self-published, and write “value not readily ascertainable”

EIF: Select “N/A.”

Value: Leave this field blank.

Income Type: Write “book sales.”

Income Amount: Provide the exact amount of income received during the reporting period.

For example:

FAQs: Investment Fund (general)

1. The investment fund is not an excepted investment fund, but all of its underlying assets are below the dollar thresholds for reporting (i.e., $1,000 in value or $200 in income). How should I report this investment fund?

Description: Provide the name of the fund and, unless it is clear from the name, describe the type of asset (e.g., “hedge fund,” “stable value fund,” “venture capital fund,” etc.).

After the description of the investment fund, write “underlying assets below reporting thresholds.”

EIF: Select “No.”

Value: Select the category that corresponds to the total value of your interest in the investment fund.

Report the income in the “Income Type” and “Income Amount” fields. See Question #2 for more information on reporting income.

2. Do I provide the exact amount of income or do I select a category of income in the “Income Amount” field?

In the “Income Type” and “Income Amount” fields, you generally would report all income received during the reporting period. But what you enter depends on several factors:

• Income less than $201: Select the “None (or less than $201)” category in the “Income Amount” field. You do not need to specify the type of income.
• Excepted investment fund: If the asset qualifies as an excepted investment fund, select the “Income Amount” category that corresponds to the amount of income received by the asset during the reporting period. You do not need to specify the type of income.
• Dividends, capital gains, interest, rent, or royalties: If the income from the asset can be classified as dividends, capital gains, interest, rent, or royalties, select all applicable types of income in the “Income Type” field, unless the asset is an excepted investment fund. Also, select the category in the “Income Amount” field corresponding to the total amount of income you received during the reporting period.
• Other income: Describe the type of income in the “Income Type” field (e.g., “partnership share” or “distribution”). Also, in the “Income Amount” field, provide the exact amount of income received during the reporting period, instead of selecting a category for the amount of income.

3. The fund in which I invest does not qualify as an excepted investment fund; however, it will not provide information about the underlying assets to me. How do I satisfy the reporting requirements for this fund?

Please consult with your ethics official for guidance specific to your situation. In general, an agency may certify a report if the agency is satisfied that the filer has made a good faith effort to obtain the required information and that the potential for conflicts has been addressed. If you are a nominee to a full-time position requiring Presidential appointment and Senate confirmation (PAS), you will need to provide a letter from the fund stating that the fund will not disclose the underlying assets. You also need to note the following in the “Description” field for the entry: “Underlying assets are not ascertainable.” See OGE Legal Advisory LA-14-05 (September 30, 2014).

4. The fund in which I invest does not qualify as an excepted investment fund; however, I am bound by a confidentiality agreement from releasing information regarding the underlying assets. How do I satisfy the reporting requirements for this fund?

Please consult with your ethics official for guidance specific to your situation. In general, an agency may certify a report if the agency is satisfied that the filer is unable to disclose the information publicly due to a preexisting confidentiality agreement and that the potential for conflicts has been addressed. If you are a nominee to a full-time position requiring Presidential appointment and Senate confirmation (PAS), you will need to agree to divest the fund after confirmation. You also need to note the following in the “Description” field for the entry: “Underlying assets are not disclosed due to a preexisting confidentiality agreement. I will divest this asset if confirmed.” See OGE Legal Advisory LA-14-05 (September 30, 2014).

5. I am filing a New Entrant report in March 2022, so I report income for 2021 and 2022 up to the date of my filing. However, the only statement of income that I receive from the fund is an annual K-1 and I have not yet received that document for 2021. How should I calculate the income for 2021 and for the period of January through March of 2022?

In those special cases where you cannot reasonably obtain income information, you are permitted to provide a good faith estimate. Given the facts presented above, a good faith estimate for 2021 might be your K-1 income for 2020 and a good faith estimate of your 2022 income might be a pro-rated portion of 2020 income. Whatever method you use for arriving at a good faith estimate, it is recommended that you provide a brief note explaining the method.

6. Can I list the underlying assets of the investment fund in an endnote?

Generally, you should report the underlying assets of a fund as separate line entries if you can ascertain the value or income information for the underlying assets. However, you may use an endnote if you are reporting value and income information at the level of the fund overall. You may also report underlying assets in an endnote if you have already reported the underlying assets of the fund in another place in your report or if the fund structure is particularly complicated.

When using endnotes, you must provide the total value of the investment in the fund and the total amount of income received as part of the line entry within the main body of the report. In addition, if an underlying asset is a privately held company, report the line of business of the company in the endnote. If an underlying asset is another investment fund, indicate whether it is an excepted investment fund (EIF). If it is not an EIF, report the underlying assets.

7. The fund in which I invest does not qualify as an excepted investment fund and it has multiple levels of assets. I can determine the value and income of certain underlying assets, but I cannot determine this information for all of the underlying assets. How do I report value and income information?

When providing value and income information for a fund with multiple levels of assets, use the following guidelines:

• Attribute value and income information down to the underlying assets at a lower level if it is possible to do so consistently.
• Do not duplicate value/income information. Therefore, if value/income information has been attributed to the underlying assets of a level, do not report the overall value/income information for the level itself.

As an example, you would ideally report 1201 Capital Ventures, LLC, as follows:

If you cannot attribute value/income among the holdings of 1201 Ventures II, LP, report as follows:

If you cannot attribute value/income among the holdings of 1201 Capital Ventures, LLC, report as follows:

FAQs: IRA, Roth IRA, SEP IRA, or Keogh Plan

1. When I report my retirement account distributions, may I subtract the cost basis?

For purposes of measuring the amount of income received, you may subtract from the distribution any portion that constitutes an investment into the plan. In most cases, though, filers will find it easiest to use the total amount of a distribution during the reporting period.

FAQs: Law Firm (partnership)

1. I am a non-equity partner at my firm. What do I report in Part 2?

Report the income that you have received and any anticipated payments in Part 2. In the “Description” field, note that you are a non-equity partner. Report the exact amount of income received in the “Income Amount” field and provide an appropriate description of the type of income in the “Income Type” field.

2. I received the return of my capital account from my former firm during the reporting period. What do I report in Part 2?

The return of capital you originally contributed to the firm is not “income”; however, if you received more than you originally contributed, that additional amount is generally reportable as income.

Very often, the return of a capital account does not include any amounts that constitute income so that you would have nothing to report in Part 2. In the event that the return included income over $200, you should add a line entry to Part 2, describing the item as a capital account return, marking the “Value” field as “None (or less than $1,001),” identifying the type of income, and providing the amount.

For example:

FAQs: Leave of Absence

1. My leave of absence is for two years. What if my employer offers to extend my leave of absence beyond the initial two years?

Extensions of leaves of absence should be discussed with your agency’s ethics office. In many cases, additional leaves of absence or extended leaves of absence do not require additional ethics arrangements.

2. As a university employee, I pay a reduced rate of tuition for my children. Do I report this continuing benefit? Will government ethics rules prevent me from continuing to receive a reduced tuition rate from the university while I am in the government?

This reduced tuition benefit is a continuing agreement or arrangement with the university. Describe this benefit in Part 3. In the normal case, you do not need to report this benefit in Part 2. You will need to coordinate with your agency’s ethics office to determine whether this benefit presents any ethics issues.

Standard employee benefits usually are permissible if consistent with the university’s policy or practice for leaves of absence. Any nonstandard terms or benefits will necessitate further analysis by an ethics official to determine whether the benefits are permissible. Whether your benefits are standard or nonstandard, you should discuss them with your ethics officials.

In addition, you will not be permitted to participate as a government official in certain matters affecting your university. More specifically, whether or not the benefit is standard, you will not be permitted to participate as a government official in any particular matter that will directly and predictably (1) have a “special or distinct effect” on your university, other than as a class of universities, or (2) have an effect on the university’s ability or willingness to continue providing this benefit to you. Your agency ethics official will be able to discuss conflicts of interest with you in detail.

3. As a tenured faculty member, I receive a housing subsidy. Do I report this subsidy? Will government ethics rules prevent me from continuing to receive this subsidy while I am in the government?

The housing subsidy is a continuing agreement or arrangement with the university. Describe this benefit in Part 3. In the normal case, you do not need to report this benefit in Part 2. You will need to coordinate with your agency’s ethics office to determine whether this benefit presents any ethics issues.

Standard employee benefits usually are permissible if consistent with the university’s policy or practice for leaves of absence. Any nonstandard terms or benefits will necessitate further analysis by an ethics official to determine whether the benefits are permissible. Whether your benefits are standard or nonstandard, you should discuss them with your ethics officials.

In addition, you will not be permitted to participate as a government official in certain matters affecting your university. More specifically, whether or not the benefit is standard, you will not be permitted to participate as a government official in any particular matter that will directly and predictably (1) have a “special or distinct effect” on your university, other than as a class of universities, or (2) have an effect on the university’s ability or willingness to continue providing this benefit to you. Your agency ethics official will be able to discuss conflicts of interest with you in detail.

4. As part of my employee benefit package, I have a reduced interest mortgage arrangement with my university. Do I report this arrangement? Will government ethics rules prevent me from continuing to participate in the university’s reduced interest mortgage program?

This is a continuing agreement or arrangement with the university. Report the mortgage in Part 3 and Part 8. You do not need to report this benefit in Part 2. You will need to coordinate with your agency’s ethics office to determine whether this benefit presents any ethics issues.

Standard employee benefits usually are permissible if consistent with the university’s policy or practice for leaves of absence. Any nonstandard terms or benefits will necessitate further analysis by an ethics official to determine whether the benefits are permissible. Whether your benefits are standard or nonstandard, you should discuss them with your ethics officials.

In addition, you will not be permitted to participate as a government official in certain matters affecting your university. More specifically, whether or not the benefit is standard, you will not be permitted to participate as a government official in any particular matter that will directly and predictably (1) have a “special or distinct effect” on your university, other than as a class of universities, or (2) have an effect on the university’s ability or willingness to continue providing this benefit to you. Your agency ethics official will be able to discuss conflicts of interest with you in detail.

FAQs: Liabilities

In answering the questions below, we have assumed that the liability at issue exceeded $10,000 at some point in time during the reporting period. Otherwise, the liability would not be reportable.

1. Do I have to report a mortgage on my vacation home?

A mortgage on your vacation home is treated like a mortgage on your primary home. Follow the guidance for mortgages that is provided on the main “Liabilities” page.

2. Do I have to report a revolving home equity line of credit if my personal residence serves as collateral for the loan?

An exercised line of credit secured by your personal residence is treated like a mortgage. Follow the guidance for mortgages that is provided on the main “Liabilities” page. You do not need to report a line of credit that has not been exercised.

3. Do I have to report a loan against my IRA or retirement plan?

No.

4. Do I have to report a loan against the cash value of my life insurance policy?

No.

5. Do I have to report loans taken out by a business I own?

You do not have to report the liabilities of a business, unless you, your spouse, or a dependent child is personally liable (i.e., do not include a loan owed by a LLC, unless you, your spouse, or a dependent child is also personally liable for that same loan).

6. What if I have paid off a liability?

You still report the liability. If you wish, you may indicate that you have paid off the liability in your description of the liability in the “Creditor Name” column, but you are not required to indicate that you have paid off the liability.

The reporting rules for revolving charge accounts, such as credit card balances, are different from all other liabilities. You do not have to report credit card debt if you paid off the debt before the close of the reporting period. For a Nominee, New Entrant or Candidate report, the reporting period ends on the date on which you file the report.

7. Do I have to report personal loans from relatives?

It depends. The relevant statutory provision is somewhat complicated. You do not need to report personal liabilities that (a) you, your spouse, or your dependent child owe (b) to a spouse, child, parent, or sibling of (c) you, your spouse, or your dependent child. Personal loans from other relatives are reportable. However, if you received the loan from a relative or a family trust, you may write “family member” or “Family Trust” in the “Creditor Name” column.

8. Do I have to report a personal loan from a close friend?

Yes, personal loans from friends are generally reportable.

9. Do I have to report a loan on which I co-signed?

If you are only a guarantor on a loan, such as a car loan for your child, and you have no present legal obligation to repay that loan, then you do not have to report the loan as a liability. However, if by co-signing the loan you have created a current legal obligation to repay regardless of whether the person with whom you co-signed defaults on the loan, then report the loan.

10. Do I have to report any additional information for a current debt stemming from a co-signed loan?

Yes. Identify the co-signer in the “Type” column. If the party is a relative, identify the party as a “family member” (e.g., “co-signed loan for family member”). Otherwise, provide the party’s name (e.g., “co-signed loan for Wilson Widgets”).

11. Do I have to report a debt that I dispute I owe?

You should consult with your ethics official in order to determine whether or not the disputed debt is reportable.

12. Do I have to report taxes I owe?

You never have to report taxes that you owe for the current year. However, you generally need to report overdue taxes.

13. Do I have to report a tax liability that is being enforced through a lien that has been placed on my personal residence?

Yes. A tax lien is significantly different from a mortgage so the reporting exception for a mortgage on a personal residence does not apply.

14. Where can I find the interest rate on my margin account?

This information should be available in your margin agreement.

15. Do I have to list the securities purchased through a margin account?

You do not need to list the securities in Part 8.

However, you would report in Part 6 securities that have a value of more than $1,000 or from which more than $200 in income was received during the Part 6 reporting period.

16. Do I have to report all capital commitments?

Usually, yes. You have to report capital commitments that you would be legally required to meet upon demand.

17. Do I have to report a bill for services, such as legal fees or university tuition?

Report a bill for services only if it was overdue and exceeded $10,000 during the reporting period. If the bill was not overdue, you do not need to report it. Note that a bill paid on installments would be reported as an ordinary loan/liability, regardless of whether any particular installment payment was overdue.

18. Do I have to report liabilities with a creditor totaling more than $10,000 if no one liability exceeds $10,000?

Yes. The reporting threshold is tied to the amount owed to the creditor, not owed on any particular liability with that creditor. When reporting multiple liabilities below $10,000 with a single creditor, you may use the following formats:

* Loans at lines 2 to 4 aggregate to more than the reporting threshold, but the balances of the individual loans are below the reporting threshold.

or

* Loans from this source aggregate to more than the reporting threshold, but the balances of the individual loans are below the reporting threshold. The Year Incurred ranges from 2013 to 2015 and the Rate ranges from prime - 0.5 to prime - 0.7.

19. I refinanced a mortgage during the reporting period. Do I report the prior mortgage?

Yes, you need to report the new mortgage and the old, refinanced mortgage, assuming the mortgage amount exceeded $10,000. This is required because, with the exception of revolving charge accounts, Part 8 looks at the highest amount owed during the reporting period, not the amount owed at the end of the reporting period. Here, you owed more than $10,000 to the old creditor before the refinance and then owed more than $10,000 to the new creditor after the refinance. In reporting both mortgages, you may note that the old mortgage was repaid (so that readers do not assume you currently owe money to both creditors); however, you are not required to provide this explanation.

FAQs: Life Insurance (variable)

1. How do I value a variable life insurance policy?

For purposes of financial disclosure, the value of a variable life insurance policy and its underlying assets is the cash surrender value, not the face value.

2. Do I report proceeds from a relative’s variable life insurance policy?

No.

FAQs: Life Insurance (whole or universal)

1. What do I select for the “Excepted Investment Fund” field?

Whole and universal life insurance policies are not viewed as excepted investment funds because they represent an obligation of the sponsoring company rather than an interest in an investment fund. For this reason, select “N/A.”

2. How do I value a whole life or universal life insurance policy?

For purposes of financial disclosure, the value of a whole life or universal life insurance policy is the cash surrender value, not the face value.

3. Do I report proceeds from a relative’s whole life or universal life insurance policy?

No.

FAQs: Loan Made to Another Party

1. How do I determine the “value” of the loan for purposes of financial disclosure?

Use the amount of the liability owed as of the end of the reporting period.

2. What if a loan I had made previously was paid off during the reporting period?

Report the loan only if you received more than $200 in income during the reporting period. The value of the loan in the “Value” field will be “None (or less than $1,001)” because it has been paid off.

3. Do I report co-signers on a loan?

Yes, if by co-signing the loan, the individual created a current legal obligation to repay regardless of whether the principal obligor/debtor defaults on the loan.

4. Do I report guarantors on a loan?

Not normally. Report a guarantor only if the principal debtor has defaulted on the obligation.

5. How do I report loans made through a peer-to-peer lending platform?

Often, with a peer-to-peer (P2P) lending platform, you have an obligation of the platform backed by a portfolio of loans to individual borrowers and you will not know the identities of those borrowers. If that is the case, report your investment as follows:

If your investment is structured as a direct investment in one or more loans to borrowers or if you do know the identities of the borrowers, consult with an ethics official at your agency.

FAQs: Managed Account

1. I have always thought of my managed account as being similar to a publicly traded mutual fund. Why doesn’t it qualify as an excepted investment fund?

Unlike a managed account, which is not an “excepted investment fund,” a publicly traded mutual fund qualifies as an “excepted investment fund” because:

• The publicly traded mutual fund is an investment fund in which various investors have “pooled” their money.
• The publicly traded mutual fund is independently managed. As an investor in such a fund, you have no ability to direct the fund manager to buy or sell any investments.
• The publicly traded mutual fund, which is actually an investment company, is publicly traded or available.
• The publicly traded mutual fund is widely held. As a “pooled investment” a publicly traded mutual fund issues shares of an investment company that typically has thousands, and in some cases millions, of investors.

By contrast, a managed account is not a pooled investment fund because:

• The managed account is not an investment fund in which various investors have “pooled” their money. As an investor in a managed account, you have not “pooled” your money with other investors. Instead, you hold a separate account of your own. Although the account manager may have offered you the option of selecting a predetermined “portfolio” of assets, you own each of these assets individually and directly in your own name.
• The managed account is not independently managed. As an investor in a managed account, you likely have the ability to direct the account manager to make some adjustments to your personal account in order to customize your portfolio of holdings. Even in the rare case in which an account manager will not honor some limited requests to sell or refrain from purchasing certain securities, you may be able to remove the portfolio of securities from the account and manage the securities yourself.
• The managed account is not publicly traded or available. As stated above, a mutual fund sells its own shares. But the manager of your account does not sell shares of your account. It may be true that the manager offers to purchase for investors securities from an established list that it describes as a “portfolio” in its marketing literature, but the “portfolio” is not a company or other legal entity. The “portfolio” is merely a list of securities that the account manager is willing to purchase for individual account holders.
• The managed account is not widely held. You are the only investor in your account. Although other investors may have selected the same securities for their own accounts, they maintain their accounts separately from yours. Thus, although a mutual fund may have millions of investors, your account has only one investor.

For these reasons, a managed account does not satisfy the required criteria for qualifying as an “excepted investment fund” that are established in 5 C.F.R. § 2634.312(c).

2. Do I have to report the assets of a robo-advised account?

Yes. A robo-advised account is a managed account in which a digital program makes trades on an account holder’s behalf based on an algorithm. As with other managed accounts, a robo-advised account is not a pooled investment fund that qualifies as an excepted investment fund.

FAQs: Money Market Fund

1. What is the primary difference between a money market account and a money market fund?

A money market account is an ordinary cash account. A money market fund is a type of mutual fund.

2. What is the dollar threshold for reporting a money market fund?

More than $5,000 for value

More than $200 for income

3. What is the dollar threshold for reporting a money market account?

More than $5,000 for value

More than $200 for income

FAQs: Mutual Fund

1. Do I need to provide the ticker symbol of a mutual fund in my financial disclosure report?

You are not required to provide the ticker symbol, but we encourage you to provide the ticker symbol if you know it. Providing ticker symbols will expedite the review of your report, which will enable you to clear the certification process more quickly. Regardless of whether you provide the ticker symbol, you need to provide the full name of the fund.

2. How do I report a mutual fund that is not an Excepted Investment Fund (EIF) because I exercise control over or have the ability to exercise control over the financial interest held by the fund?

You report the fund in Part 2, Part 5, or Part 6 using the standard guidance for mutual funds, with the exception of changing the EIF designation to “No.” Add an endnote to the entry in which you will provide a link to the webpage that provides the most recent list of the assets in the fund.

Endnote to #1: See [web address] for the holdings of this fund.

FAQs: Oil, Gas, or Other Mineral Rights Lease

1. What if I have several leases with the same company?

In that case, you may describe these leases as a single entry. For example, write the following in the “Description” field: “Oil Leases in Texas and Oklahoma, Humble Oil & Refining Co.”

FAQs: Option (incentive stock option plan)

1. The sale of stock that I purchased using an incentive stock option produced ordinary income. How do I report that income?

Generally, the sale of stock would produce a capital gain or loss. However, in some situations, the sale of stock acquired through an incentive stock option may produce ordinary income as well.

In these cases, report the exact amount of ordinary income in the “Income Amount” field. Describe the income in the “Income Type” field as “option exercise, ordinary income.”

FAQs: Option (put or call purchased)

1. I have an option based on an index rather than an option for a particular security. How do I report that?

If exercised, options based on an index are settled for cash rather than through buying or selling an underlying security.

a. Reporting an open, outstanding option on an index (i.e., the option has not expired, been exercised, or closed through an offsetting transaction):

Report an open index option in the same manner that you would report an open option on a security. The only difference is that you will list the name of the underlying index rather than the name of an underlying security.

b. Reporting an index option that has been exercised or closed through an offsetting transaction:

Report the option if more than $200 in income was received during the reporting period.

Description: Provide the name of the option, which should include whether the option was a call or put and the identity of the underlying index (e.g., “Call option, S&P 500”).

Value: Report the value of the option by selecting the appropriate category, which should be “None (or less than $1,001).”

Income Type: Specify the type(s) of income if the total amount of income received during the reporting period exceeded $200.

Income Amount: Select the category corresponding to the total amount of income received.

c. Reporting an option on an index that expired:

 You do not need to report an expired index option that you bought.

FAQs: Option (put or call written)

1. Do I have to report written options as transactions?

You would need to report option writing in an Annual, Termination, or Periodic Transaction report. Transactions are reported in Part 7 of the OGE Form 278e for an Annual or Termination report. Periodic Transaction reports are completed using the OGE Form 278-T. In the interest of clarity, OGE recommends that you leave the “Type” field blank and instead specify the type of transaction by noting “opened written call option position” or “opened written put option position” in the “Description” field. In addition, if the option holder chooses to exercise the option, report your purchase or sale of the underlying security as a separate transaction.

FAQs: Positions Held Outside U.S. Government

1. I am on the Board of Directors of my homeowners association but do not get paid. Do I have to report that position even though it could not be a conflict with my job?

Yes. Report any position you hold as a director, unless the organization qualifies as a religious, social, fraternal, or political entity. A homeowners association does not qualify as one of these types of organizations that are excepted from the reporting requirement.

2. I am a member of an advisory board committee to a nonprofit organization. Do I report this position?

It depends. You do not need to report service as a member of an advisory board or committee if the following criteria are met: (1) your service is unpaid; (2) the board or committee is that of a non-profit or governmental organization; (3) you have no fiduciary duties of the sort exercised by officers, directors, or trustees; and (4) your role does not involve sufficient supervision by the organization to create a common-law employee-employer relationship.

3. I am the president of my son’s PTA. Do I report this position?

Yes. Mere membership in the PTA, however, is not reportable.

4. Do I report service as a conservator or guardian?

Yes.

5. Do I report a power of attorney as a position?

No.

6. I am named as the executor in the will of a family member who is still alive. Do I report this position?

No.

7. I am a court-appointed administrator of an estate. Do I report this as a position?

Yes.

8. I am the custodian of an UTMA account. Do I report this as a position?

No.

9. I am a representative on a Federal Advisory Committee Act (FACA) committee. Do I report this as a position?

Reporting your service as a separate line entry is not necessary. Service as a representative is sometimes related to the representative’s position with an employer or another non-federal organization. If this is the case for you, you may note your service as a representative as part of your description of a related non-federal position.

10. I am a special Government employee on a Federal Advisory Committee Act (FACA) committee. Do I report this as a position?

Do not report service as a special Government employee in Part 1. Instead, report your service as a federal position held within the preceding 12 months. If you are filing in Integrity, you would enter this information in the “Your Prior Federal Positions” data entry table. If you are completing a hard copy of the OGE Form 278e, you would enter this information on the Cover Page of the report.

11. I placed my consulting LLC into inactive status prior to the start of the reporting period. Do I report my role as managing member of this inactive LLC as a position?

Yes. If you had dissolved the LLC, however, you would no longer hold a reportable position.

12. I am on a leave of absence from my university employer, which began prior to the start of the reporting period. Do I have a position to report?

Yes, you need to report the position from which you have taken a leave of absence.

13. I am the uncompensated section chair of a professional association. Do I have a position to report?

No.

14. I receive honoraria from events organized through a speakers’ bureau. Do I need to report a position with the speakers’ bureau?

Ordinarily, no. If your relationship with the speakers’ bureau is simply as an available speaker for discrete outside events, you do not hold a reportable position with the speakers’ bureau.

15. I contribute to a donor-advised fund. Do I need to report a position with the fund?

Generally, you do not if the fund is available through an established U.S. financial institution.

Specifically, do not report a position with a donor-advised fund if the following criteria are met:

• Although you may retain the “privilege” of recommending a target charity for donation distribution, the fund retains ultimate control over this decision and your recommendation is nonbinding.
• Although you may retain the “privilege” of providing a nonbinding recommendation for allocation or re-allocation of donated account assets, the fund retains ultimate control over this decision.
• You are not legally listed as an officer, director, trustee, partner, employee, representative, or consultant of the fund.
• You do not provide any services to the fund other than within the context of advisory recommendations related to your own account.
• You do not receive compensation from the fund.

If these criteria are not met, contact an ethics official for further guidance.

16. Do I have to report professor emeritus status as a position?

Ordinarily, no, because emeritus status is ordinarily an honorary status or role without any duties or a continuing employer/employee relationship with the organization. However, if your circumstances differ, please consult an ethics official at your agency.

FAQs: Precious Metal

1. How do I know whether my precious metal is “held for investment purposes”?

Precious metal held in the form of ingots or warehouse certificates would normally be reportable because they are held for investment purposes.

Jewelry or coins held strictly for enjoyment or utility would not be reportable. Periodic sales from a collection or an expectation of such a sale in the foreseeable future would indicate that the jewelry or coins are held for an investment purpose.

If you are unsure whether precious metal is held for investment purposes, consult your ethics official.

2. I have a gold fund. How do I report that?

If you are invested in precious metals through securities, such as a metals mutual fund, a gold exchange-traded fund, or silver futures, report your interest according to the type of security.

FAQs: Real Estate

1. What should I use to value my real estate?

You may use a tax assessment, recent appraisal, recent purchase price, or other recognized valuation method for real estate. A good faith estimate of the fair market value may be made if the exact value cannot be obtained without undue hardship or expense.

2. I own multiple properties in the same city. Can I report them as a single entry?

You may aggregate real estate properties that are:

• located in the same city and state;
• held directly by you, your spouse, or your dependent children; and
• held only for investment or rental income (i.e., the real estate is not used in connection with a business in which you, your spouse, or a dependent child has an interest).

In addition, if the properties are of different types, indicate each type of property in the “Description” field (e.g., “residential and commercial real estate in Baltimore, MD”).

3. Why not provide street addresses?

As a public filer, your report will be made available to the public. Generally, filers prefer not to disclose identifying information about properties beyond what is required.

4. Do I have to report my rental income from short-term rentals of real estate or from renting a portion of real estate through an online service?

Yes. Report this like any other rental property.

FAQs: Real Estate Holding Company

1. The real estate holding company in which I have a financial interest is a limited liability company for holding and managing my family’s rental house at the beach. How do I value this interest if my 3 siblings and I own it equally?

Report only the value of your share, not the overall value of the house. You may use a tax assessment, recent appraisal, recent purchase price, or other recognized valuation method for real estate. A good faith estimate of the fair market value may be made if the exact value cannot be obtained without undue hardship or expense.

2. The company in which I have a financial interest does not hold any real estate. Instead, it manages apartment buildings throughout Miami. How do I describe this entity?

Provide the full name of this entity and describe the nature of the holdings as “apartment building management services.”

3. The real estate holding company in which I have a financial interest owns or operates a farm. How do I report this interest?

This guide contains instructions for reporting farms. If you have an active management role in the farm, see the instructions for reporting a farm business. If you are a passive investor in the farm, see the instructions for reporting a farm or farmland.

FAQs: Restricted Stock

1. How do I value unvested restricted stock for purposes of the “Value” field?

Value shares of unvested restricted stock as equivalent in value to the same number of shares of stock.

FAQs: Restricted Stock Unit (RSU)

1. How do I value a restricted stock unit for purposes of the “Value” field?

Value restricted stock units as equivalent in value to an equivalent number of shares of stock, unless your employer’s plan provides another means for determining value.

FAQs: Salary

1. Do I report my annual salary or the total amount of salary income received during the reporting period?

Report the total amount of salary income that you received during the entire reporting period, not just the amount that you received in a calendar year.

2. What if I received a form of compensation other than salary?

Rather than writing “salary,” write another description that more accurately describes the type of income you received.

3. What if I received a bonus?

If you received a cash bonus, you may write the phrase “salary and bonus” and provide the combined amount of your salary and bonus.

4. May I combine salary and forms of compensation other than a bonus?

Do not combine salary with forms of compensation other than a cash bonus. For example, do not combine salary with income in the form of stock options, and do not combine salary with deferred compensation.

5. Do I report income from salary as an employee of the United States Government?

No.

6. What if my spouse or I received income as a contractor for the United States Government?

Although you do not report salary received as a United States Government employee, you do report income received as a contractor for the United States Government.

7. What if I worked for a state or local government?

You would need to report your salary from a state or local government.

8. What if my minor or dependent child received salary or wages from employment?

Do not report wages or salary that a minor or dependent child received.

FAQs: Severance Payment

1. I received salary and a cash severance payment from the same employer. Can I combine these?

Yes. You may write the phrase “salary and severance” and provide the combined amount of the income that you have received from this employer. However, do not combine salary with a severance payment that you have not yet received (a “severance receivable”). Report salary and a severance receivable as two separate line items in your report.

2. My employer has not yet fixed the amount that I will receive. How should I value a severance receivable?

If you are a Presidential nominee for a position requiring Senate confirmation, you normally will need to fix the amount before you can complete your financial disclosure report. Contact your agency’s ethics official if fixing the amount before you complete your report does not appear to be possible.

If you are a current government official who is completing a “New Entrant” report, you should be aware that, in some circumstances, a criminal statute places restrictions on certain payments to government officials. Contact your ethics official in order to determine whether you may receive the payment.

FAQs: Short Sale

1. What if I shorted the same stock on multiple occasions during the reporting period?

For multiple completed short sales of the same asset, aggregate the income from those transactions and report the income as one line entry in the report.

2. Do I have to report short sales as transactions?

You would need to report your sale of a borrowed security to open the short position in an Annual, Termination, or Periodic Transaction report. Likewise, you would need to report your purchase of the security used to close the short position. Transactions are reported in Part 7 of the OGE Form 278e for an Annual or Termination report. Periodic Transaction reports are completed using the OGE Form 278-T.

In the interest of clarity, OGE recommends that you leave the “Type” field blank and instead specify the type of transaction by writing “opened short position” or “closed short position” in the “Description” field.

FAQs: Small Business (third-party escrow agreement)

1. I have an escrow agreement that does not relate to the sale of a business. How do I report it?

The guidance in this section is intended merely to provide an example of the handling of one type of escrow agreement. When reporting another type of escrow agreement, follow the guidance in this section to the extent possible. Your agency’s ethics official is available to assist you in ensuring full reporting of the agreement.

FAQs: Sources of Compensation

1. I was paid exactly $5,000 for teaching one class at a local community college. I have not taught any other classes or received any other payments. Do I have to list the college in Part 4?

You do not have to report the college in Part 4 because your compensation did not exceed $5,000.

However, you would report your position in Part 1. You also may need to report this income in Part 2 if you received the income during the Part 2 reporting period.

2. I am paid $3,000 per year for my services as board director for Allied Business Computing, Inc. I receive no other compensation from the company. Do I report the company in Part 4?

No. Even though you may have received more than $5,000 across the entire reporting period, you do not have to report this source in Part 4 because you received only $3,000 per year, which is less than the threshold of more than $5,000 in any one calendar year.

However, you would report your position in Part 1. You also may need to report this income in Part 2 if you received the income during the Part 2 reporting period.

3. I provided consulting services to the United States Government. Do I report the United States in Part 4?

No.

4. Do I report my sources of honoraria in Part 4?

Yes, report each source in excess of $5,000. You also need to report these sources in Part 2.

5. I received honoraria in excess of $5,000 from events organized through a speakers’ bureau. Do I need to report the speakers’ bureau as a source of compensation in Part 4?

Ordinarily, no. If your relationship with the speakers’ bureau is simply as an available speaker for discrete outside events and the income was from the event itself, then the speakers’ bureau would not be viewed as a “source” of compensation. However, if the speakers’ bureau made its own payment to you (e.g., a signing or retention payment) in excess of $5,000, then you would report the speakers’ bureau as a source of compensation.

6. Do I report a book advance in Part 4?

Not if the advance is simply a payment backed by future, anticipated royalties. If the advance is conditioned on the performance of additional services, such as promotional activities, however, the payor may be viewed as a source of compensation for purposes of Part 4. In such a case, please consult an ethics official.

7. Do I report my contingency fee clients in Part 4?

You would report a contingency fee client in Part 4 only after you have received payment for the services. If you have received payment in a class action contingency fee case, you must ascertain the amount of fees attributable to each class action plaintiff and then report each plaintiff from whom the attributable amount of fees exceeded $5,000 in a calendar year.

FAQs: Stock

1. Do I need to provide a ticker symbol?

Providing a ticker symbol will expedite the approval of your report, but a ticker symbol is not required. Regardless of whether you provide the ticker symbol, you need to provide the full name of the stock.

2. Do I need to provide the line of business of the company that issued the stock?

You do not need to provide the line of business of the company if the company is publicly traded. However, if the company is not publicly traded (i.e., the company is privately held), you should provide the line of business of the company.

3. What is a “publicly traded” stock?

A stock is publicly traded if it is listed on a national exchange (NYSE or NASDAQ) or a regional exchange in the United States.

4. I have some preferred securities. Do I report them as stock or bonds?

First, verify the specific type of asset that you hold. Generally, “preferred security” will refer to shares of preferred stock, which should be reported using the instructions for stock. However, you might also hold a portfolio of preferred securities, and, in that case, the reporting requirements will depend on the type of investment fund used to hold that portfolio. The bond instructions are not applicable because, despite an income payout structure that seems similar to a bond, preferred securities are not mere debt instruments.

FAQs: Stock Appreciation Right

1. My company does not provide a value estimate for my stock appreciation right. How do I value it?

For purposes of financial disclosure, you may value a stock appreciation right based on the difference between the current market value and the grant price. This formula is: (current market value – grant price) x number of shares = value.

2. What does it mean to say a stock appreciation right is “underwater”? And how do I value a stock appreciation right that is underwater?

The stock appreciation right is said to be “underwater” if the value is zero or a negative number. This situation occurs when the current market value of a share is less than the grant price. In other words, the stock decreased in value after the employer granted the stock appreciation right, and the employee would not benefit from exercising the right. However, stock appreciation rights that are underwater are reportable because they have value. Stated differently, there is a value to holding a stock appreciation right, even if the right is currently underwater.

If you have no reasonable means for valuing an underwater stock appreciation right, you may employ an alternate form of reporting. The alternate form of reporting is intended to provide sufficient details for a reader to assess the value. Accordingly, in that case, provide the following information in the “Description” field: (1) grant price; (2) number of shares; (3) expiration date; and (4) for an unvested stock appreciation right, the vesting date.

FAQs: Transactions (OGE Form 278e and OGE Form 278-T)

1. I reported a purchase in a Periodic Transaction report (OGE Form 278-T). Do I have to report the transaction again in my Annual or Termination report?

You do not need to report a transaction in an Annual or Termination report (OGE Form 278e) if the transaction has already been reported in a Periodic Transaction report (OGE Form 278-T), unless your agency requires duplicate reporting. Filers using Integrity can import transactions disclosed in prior Periodic Transaction reports without additional data entry. Other electronic filing systems might offer similar functionality. Agencies using such systems may determine that the benefits of aggregating all transactions within a reporting period in an Annual or Termination report outweigh the minimal burden imposed on the filer.

In addition, you may have to report the asset in Part 2, 5, or 6 if it meets the value or income reporting thresholds.

2. Are the transaction reporting requirements for an Annual or Termination OGE Form 278e the same as for my Periodic Transaction reports (OGE Form 278-T)?

No. In addition to the transactions that are reportable in a Periodic Transaction report, your Annual or Termination report includes purchases, sales, and exchanges of real property and excepted investment funds, such as mutual funds.

3. I purchased $1,500 worth of the ABC Health Sciences Fund at different times in the following amounts: $200, $500, and $800. Do I report anything?

OGE Form 278-T

No. You only have to report transactions on an OGE Form-278-T that individually exceeded $1,000. In addition, you do not have to report in an OGE Form 278-T transactions involving a fund that qualifies as an excepted investment fund. Based on the facts of this question, it is not clear whether the ABC Health Sciences Fund qualifies as an excepted investment fund; however, if any individual transaction exceeded $1,000, you would either need to determine the fund’s eligibility for the reporting exception or report the fund.

OGE Form 278e

No. You only have to report transactions that individually exceeded $1,000. None of your purchases exceeded $1,000, so you have nothing to report (even though the total amount purchased exceeded $1,000).

4. I purchased the ABC Health Sciences Fund multiple times during the past year in amounts greater than $1,000. Do I have to report the date of each purchase?

OGE Form 278-T

If the fund qualifies as an excepted investment fund, you do not need to report the transactions at all. If the fund does not qualify, you need to list the date of each transaction.

Note that, if a fund does not qualify as an excepted investment fund, you need to report not only transactions of the fund itself but also any transactions made within the fund of its underlying assets to the extent that your share of the transaction value exceeded $1,000.

OGE Form 278e

You may combine multiple purchases or multiple sales of an excepted investment fund, such as a mutual fund, in a single entry, listing each date or providing a more general description, such as “monthly” or “multiple.” If the fund does not qualify as an excepted investment fund, you need to list the date of each transaction.

Note that, if a fund does not qualify as an excepted investment fund, you need to report not only transactions of the fund itself but also any transactions made within the fund of its underlying assets to the extent that your share of the transaction value exceeded $1,000.

5. I purchased stock in Allied Business Computing Corp. multiple times during the past year in amounts greater than $1,000. Do I have to report the date of each purchase?

OGE Form 278-T

You need to list the date of each transaction.

OGE Form 278e

As noted in question 1 above, you do not need to report a transaction in an Annual or Termination report (OGE Form 278e) if the transaction has already been reported in a Periodic Transaction report (OGE Form 278-T), unless your agency requires duplicate reporting. An agency that requires duplicate reporting may require you to provide the specific dates again or may permit a more general reference.

If, however, you have not previously disclosed transactions that are reportable in a Periodic Transaction report (OGE Form 278-T), you need to list the date of each such transaction.

6. Do I report dividend reinvestments?

OGE Form 278-T

Yes. Dividend reinvestments are purchases. However, you have to count only those dividend reinvestment transactions that exceeded $1,000 each.

OGE Form 278e

Yes, for the reason cited above. However, you do not need to report a transaction in an OGE Form 278e if it was previously reported in an OGE Form 278-T, unless your agency requires duplicate reporting.

7. Do I report sales that resulted in losses?

OGE Form 278-T

Yes. The reporting threshold is tied to the size of the transaction, not the gains or losses produced. If the transaction exceeded the $1,000 threshold, report the transaction.

OGE Form 278e

Yes, for the reason cited above. However, you do not need to report a transaction in an OGE Form 278e if it was previously reported in an OGE Form 278-T, unless your agency requires duplicate reporting.

8. I changed investment options within my 401(k). Do I have to report anything?

OGE Form 278-T

It depends. Moving your account balance from one investment option to another option entails a sale of the first investment and a purchase of the second. If these transactions exceeded $1,000, report them, unless the investment options qualify as excepted investment funds (e.g., mutual funds).

OGE Form 278e

Yes, if the transactions exceeded $1,000. However, you do not need to report a transaction in an OGE Form 278e if it was previously reported in an OGE Form 278-T, unless your agency requires duplicate reporting.

9. Do I report transactions for assets held within a brokerage or managed account?

OGE Form 278-T

Yes, but remember that you do not need to report transactions for investment funds on an OGE Form 278-T if the investment funds qualify as excepted investment funds. Sometimes, filers choose to report these fund transactions so that they do not have to worry about reporting them in the OGE Form 278e.

OGE Form 278e

Yes, However, you do not need to report a transaction in an OGE Form 278e if it was previously reported in an OGE Form 278-T, unless your agency requires duplicate reporting.

10. Do I report transactions for underlying assets held within an investment fund?

OGE Form 278-T

You do not need to report transactions of the fund or its underlying assets if the fund qualifies as an excepted investment fund (e.g., you do not need to report in an OGE Form 278-T purchases of mutual funds or purchases of stocks held by a mutual fund). If the fund does not qualify, report transactions of the fund and its underlying assets. For the underlying assets, you would look to your share of the transaction value for the underlying asset.

OGE Form 278e

You do not need to report transactions of the fund’s underlying assets if the fund qualifies as an excepted investment fund (e.g., although you report purchases of mutual funds in an OGE Form 278e, you do not need to report the purchases of stocks held by a mutual fund). Otherwise, report the transactions in the same way that you would report transactions involving your other assets.

11. Do I have to report a purchase and sale of an asset that occurred on the same day?

OGE Form 278-T

If the purchase exceeded $1,000, report the purchase. Similarly, report the sale if it exceeded $1,000. If you made multiple purchases or sales of the same asset on a single day, you may, however, aggregate transactions of the same type (e.g., report all purchases together on one line and report all sales together on another line).

OGE Form 278e

Yes, using the guidance above. However, you do not need to report a transaction in an OGE Form 278e if it was previously reported in an OGE Form 278-T, unless your agency requires duplicate reporting.

12. How do I report transactions involving futures, foreign exchange positions, short sales, and written options?

OGE Form 278-T

You may report transactions involving futures, foreign exchange positions, short sales, and written options using the standard drop-down options within the “Type” field. However, in the interest of clarity, OGE recommends leaving the “Type” field blank and writing “opened position” or “closed position” in the “Description” field.

OGE Form 278e

Use the guidance above. However, you do not need to report a transaction in an OGE Form 278e if it was previously reported in an OGE Form 278-T, unless your agency requires duplicate reporting.

13. Do I report stock splits?

OGE Form 278-T and OGE Form 278e

No. Stock splits are not purchases, sales, or exchanges.

14. Do I report capital commitments?

OGE Form 278-T

If you enter into a capital commitment with an investment fund but do not actually provide capital in excess of $1,000, you have not made a “purchase” for purposes of financial disclosure. However, if you do provide capital in excess of $1,000, you have made a reportable purchase. Similarly, if you later provide capital in excess of $1,000 at any one time in response to a capital call, you have made a reportable purchase.

OGE Form 278e

Yes, using the guidance above. However, you do not need to report a transaction in an OGE Form 278e if it was previously reported in an OGE Form 278-T, unless your agency requires duplicate reporting.

15. Do I report a corporate spin-off?

OGE Form 278-T

Generally, no. If you receive shares of spin-off entity Y because you hold shares of original entity X, a reportable purchase, sale, or exchange has not occurred, provided that you have not surrendered any shares of entity X. No exchange has occurred because you have not traded anything for the shares of entity Y. However, if you surrendered some or all of your shares in entity X for shares of entity Y, then a reportable exchange has occurred because you have traded one security for another. Similarly, if you surrendered some or all of your shares in entity X for cash, then a reportable sale has occurred because you have traded a security for money/cash.

OGE Form 278e

Follow the guidance above. However, you do not need to report a transaction in an OGE Form 278e if it was previously reported on an OGE Form 278-T, unless your agency requires duplicate reporting.

16. Do I report a corporate split-off?

OGE Form 278-T

Generally, yes. In contrast to a corporate spin-off, a split-off generally involves you surrendering some or all of your shares of original entity X to receive shares of split-off entity Y. Here, a reportable exchange of one security for another has occurred.

OGE Form 278e

Follow the guidance above. However, you do not need to report a transaction in an OGE Form 278e if it was previously reported on an OGE Form 278-T, unless your agency requires duplicate reporting.

17. Do I report an exchange of one virtual currency for another?

OGE Form 278-T

If at least one of the virtual currencies is a security, then, yes, a reportable exchange has generally occurred. If neither virtual currency is a security, then a reportable exchange has not occurred. An employee who is required to report the exchange of one virtual currency for another must assess the value of the exchange based on the fair market value of the virtual currency received, in U.S. dollars, at the time of the transaction. If an exchange occurs on a block-chain, you may use the date and time recorded in the block-chain ledger as the date of exchange.

OGE Form 278e

Follow the guidance above. However, you do not need to report a transaction in an OGE Form 278e if it was previously reported on an OGE Form 278-T, unless your agency requires duplicate reporting.

18. Do I have to report transactions involving exchange-traded notes (ETNs), master limited partnerships (MLPs), or real estate investment trusts (REITs)?

OGE Form 278-T

Yes. ETNs are a debt security of a specific issuer rather than a portfolio of securities from different issuers. REITs and MLPs are considered to be operating businesses. Because these securities are not funds at all, they cannot qualify for the OGE Form 278-T reporting exception specific to excepted investment funds.

Note that mutual funds do exist which concentrate multiple REITs and MLPs in a portfolio. These mutual funds would typically qualify as excepted investment funds and, as such, would not be subject to the periodic transaction reporting requirements. The mutual funds would still be subject to the transaction reporting requirements of an Annual, Termination, or combined Annual/Termination report.

OGE Form 278e

Yes, using the guidance above. However, you do not need to report a transaction in an OGE Form 278e if it was previously reported on an OGE Form 278-T, unless your agency requires duplicate reporting.

19. Do I have to report transactions involving non-fungible tokens (NFTs) or fractionalized non-fungible tokens (F-NFT)?

OGE Form 278-T

Report a purchase, sale, or exchange of an NFT or F-NFT if (1) the NFT or F-NFT is a security and (2) the amount of the purchase, sale, or exchange is over $1,000. Filers who have questions regarding whether a specific NFT or F-NFT is a security can speak with a financial advisor or securities attorney.

OGE Form 278e

Follow the guidance above. However, you do not need to report a transaction in an OGE Form 278e if it was previously reported on an OGE Form 278-T, unless your agency requires duplicate reporting.

20. Is exercising vested stock options a reportable transaction?

OGE Form 278-T

Yes. The vesting of options does not trigger the reporting requirement, but exercising the options does. An incentive stock option allows you to purchase shares of the employer’s stock at a specified price. If you exercise the option and purchase shares of the stock, the purchase needs to be reported as a transaction. If you sell (or the company sells on your behalf) all or a portion of the stock, that is a sales transaction that also need to be reported, even if the sale occurs immediately following the exercise of the options.

OGE Form 278e

Follow the guidance above. However, you do not need to report a transaction in an OGE Form 278e if it was previously reported on an OGE Form 278-T, unless your agency requires duplicate reporting.

FAQs: Treasury Security

1. What are Treasury securities?

United States Treasury securities, often simply called Treasuries, are debt obligations issued by the United States Government and secured by the full faith and credit (the power to tax and borrow) of the United States.

2. What are some examples of Treasury securities?

Treasuries include:

• Treasury bills, also called T-bills, which are short-term obligations having maturities of 1 year or less (issued at a discount from their maturity value);
• Treasury notes, which are intermediate-term obligations with maturities of 1 to 10 years;
• Treasury bonds, which are long-term obligations with maturities of 10 years or more; and
• U.S. savings bonds, which are obligations issued in smaller denominations than Treasury bonds and not traded on the secondary market like other Treasuries (issued either at a discount from their maturity value or at face value with periodic interest).

3. What are STRIPS?

STRIPS (Separate Trading of Registered Interest and Principal of Securities) are created by the Treasury when it strips the coupons (interest) from Treasury bonds and sells the coupons and the principal separately, at a discount from face value.

4. What are commercially marketed Treasuries?

Investment firms also strip Treasury bonds and market them under acronyms such as CATS (Certificates of Accrual on Treasury Securities) and TIGRS (Treasury Investors Growth Receipts). Although these securities represent ownership interests in Treasuries, the investment firm becomes the obligor for repayment, rather than the U.S. Treasury.

5. I owned several Treasury securities that matured this past year. How do I report them?

In Part 6, write “U.S. Treasury securities” in the “Description” field. In the “Value” field, select the “None (or less than $1,001)” category; in the “Income Type” field, select “interest”; and in the “Income Amount” field, select the category corresponding to the amount of interest received during the reporting period. You do not need to list each security separately.

FAQs: Trust (irrevocable)

1. Do I need to report the assets of a revocable trust?

See the “Trust (revocable living)” entry in this guide for more information about revocable living trusts.

2. How do I report a “qualified trust” on the OGE Form 278e?

Before discussing qualified trusts, we want to give an important word of caution: Do not attempt to establish a federal executive branch qualified trust without first consulting OGE.

The Ethics in Government Act established a uniform system of qualified trusts that emphasizes independent trustees and limited communication with the employee involved.

There are two different types of qualified trusts:

• A qualified blind trust may hold most types of assets, such as cash, stocks, bonds, or mutual funds. It is important to note that any asset initially placed in the trust is not considered blind and continues to pose a potential conflict of interest until it has been divested or reduced to a value of less than $1,000. The new assets purchased by the trustee will not be disclosed to you, so they will be considered blind and will not pose conflicts of interest.
• In contrast, a qualified diversified trust must hold a portfolio of readily marketable securities. No single asset placed in the trust may be more than 5% of the total portfolio, and no more than 20% of the portfolio may be concentrated in any particular economic or geographic sector. Additionally, unlike with the qualified blind trust, the securities of an entity that has substantial activities in your primary area of federal responsibility cannot be put in the initial portfolio of a qualified diversified trust. By law, the assets of a qualified diversified trust certified by OGE do not pose conflicts of interest.

A “qualified trust” must be certified as such by the Director of OGE. Interested parties should contact OGE or an ethics official to coordinate efforts to create an appropriate type of trust. OGE has several model qualified trust documents available on our website.

3. Do I report transactions involving the assets of the trust?

You need to report transactions in an Annual, Termination, or Periodic Transaction report if you have a reportable current or future interest in the trust, unless the trust qualifies as an excepted trust.

4. Do I report my interest as a beneficiary of a legal defense fund?

Report a legal defense fund in Part 6 if you, your spouse, or your dependent child has a reportable interest in (see the main “Trust (irrevocable)” entry) or received income from the fund. Gifts to a legal defense fund for your benefit (or the benefit of your spouse or your dependent child) would be reported in Part 9.

5. I am the grantor of an intentionally defective grantor trust. Do I need to report the assets of the trust?

Yes. With an intentionally defective grantor trust, the grantor is responsible for the income taxes on the income produced by the trust. Under the general income reporting rules for trusts, a filer must report any income “received,” which includes any income attributed to the filer, spouse, or a dependent child for income tax purposes. In addition, this ongoing responsibility for the income constitutes a reportable current interest in the trust, requiring the disclosure of the underlying assets of the trust.

FAQs: Trust (revocable living)

1. Do I need to report the assets of a revocable living trust that I established for myself and my family?

Yes. Although a revocable trust that someone outside your immediate family established for your benefit is not normally reportable, report the assets of a revocable trust that you established for yourself or your family.

2. I have a remainder interest in my father’s revocable living trust. Is that reportable?

As with most revocable trusts, as opposed to irrevocable trusts, you generally do not report an interest in a revocable living trust, unless you, your spouse, or your dependent child is the grantor of the trust. For a detailed discussion of revocable living trusts, see an OGE memorandum entitled “Revocable Living Trusts,” DO-02-015, dated June 11, 2002. However, you should consult your agency’s ethics official if you are a beneficiary of a revocable living trust because trusts are often highly individualized and state laws governing trusts vary.

3. I received a discretionary distribution from my mother’s revocable living trust. Is that reportable?

As with most revocable trusts, as opposed to irrevocable trusts, you generally do not report discretionary distributions received from a revocable living trust, unless you, your spouse, or your dependent child is the grantor of the trust. However, you should consult your agency’s ethics official if you are a beneficiary of a revocable living trust because trusts are often highly individualized and state laws governing trusts vary.

4. Can you give me an example of an instance in which a revocable living trust established by someone for my benefit would be reportable?

Yes. One example arises in the context of mandatory distributions.

In many cases, the trust instrument for a revocable living trust either will be silent as to distributions to beneficiaries or will make clear that such distributions are discretionary.

Normally, you do not need to report your interest in a revocable living trust if you are the beneficiary, rather than the grantor. However, as an exception to this rule, report your beneficial interest in a revocable living trust if the trust instrument expressly directs the trustee to make present, mandatory distributions of trust income or principal to you (or your spouse or dependent child). In such situations, even though the grantor retains the power to revoke the trust or change beneficiaries, the fact remains that the trust instrument gives you a right to present enjoyment of trust assets – not merely a future interest – and this present enjoyment cannot be interrupted except by an affirmative act of the grantor to alter the trust.

For a detailed discussion of revocable living trusts, see an OGE memorandum entitled “Revocable Living Trusts,” DO-02-015, dated June 11, 2002.

5. Do I report transactions involving the assets of a revocable living trust?

You need to report transactions in an Annual, Termination, or Periodic Transaction report if you, your spouse, or a dependent child is the grantor of the revocable living trust or received mandatory distributions during the reporting period.

FAQs: UGMA or UTMA Account

1. My child’s grandmother established the UTMA account. All of the funds were contributed by a grandparent, who also acts as the custodian. Is my dependent child’s financial interest reportable?

Yes. Even though the funds were contributed by, and are currently controlled by, the grandparent, the funds have been irrevocably transferred to your child. Consequently, the contents of the account are considered to be your child’s assets for financial disclosure purposes.

2. What if no asset individually was worth more than $1,000 at the end of the reporting period or resulted in more than $200 in income during the reporting period?

If no individual asset exceeded the value or income threshold, you need not report the child’s financial interest in the assets of the account or in the account itself, even if the child’s aggregate interest in the entire account exceeds the $1,000 and $200 thresholds.

FAQs: Unit Investment Trust (UIT)

1. Am I required to provide a ticker symbol?

Providing a ticker symbol will expedite the approval of your report, but a ticker symbol is not required if you are unable to find the ticker symbol. Regardless of whether you provide the ticker symbol, you need to provide the full name of the unit investment trust (e.g., list “Invesco Van Kampen Intermediate Corporate Investment Grade Trust” rather than just “Invesco Van Kampen”).

FAQs: Virtual Currency (cryptocurrency or stablecoin)

1. How would I report a virtual currency future?

Report a virtual currency future using the instructions for futures contracts that are provided in this guide.

2. How would I report a virtual currency fund?

Report a virtual currency fund using the instructions in this guide for the applicable type of investment fund (e.g., mutual fund or investment fund (general)).

FAQs: Will or Estate

1. I am the executor of an estate. Do I report the assets?

If you have a beneficial interest or have received any of the assets, report the interest or the assets received in Part 6 using the instructions provided on the main “Will or Estate” page.

2. Do I need to report particular assets within an estate that have not been distributed to me?

No. As specified in OGE Informal Advisory Opinion 02 x 2 (May 14, 2002), OGE “requires that the financial disclosure report indicate only that the filer (or the filer’s spouse or dependent child) is the beneficiary of a particular estate that has not been distributed. The filer must identify the decedent, but need not attempt to identify specific assets or report specific value or income categories. This level of disclosure recognizes that filers have an interest, and it alerts ethics officials to the need to provide counseling, as appropriate, about possible conflicts issues. However, this approach does not require filers to provide more specific information that may be difficult or impossible to ascertain, or that could even present a misleading picture of the true interest the beneficiary ultimately may receive after distribution of the estate.”

With regard to the identification of the decedent, note that you may write “Estate of a Family Member” when the decedent is a family member.