A taxpayer receives two interest payments during the year. One is for $500 and in their name, and the other is for $2,000 and belongs technically to someone other than the taxpayer. Which statement best reflects what needs to be done?

a. The taxpayer has $2,500 of taxable interest to report on Schedule B.

b. The taxpayer has $500 of taxable interest to report, and $2,000 of non-taxable interest marked as a nominee distribution on their personal return.

c. The taxpayer has $500 of interest to report direct on the tax return and disregards the $2,000 payment assuming they give it straight to the other person within sixty (60) days.

d. The taxpayer must paper-file the return and request a case resolution.