Instructions for IRS Form 8038-cp - Return for Credit Payments to Issuers of Qualified Bonds

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Instructions for Form
Department of the Treasury
Internal Revenue Service
8038-CP
(Rev. September 2018)
(Use with the January 2012 revision of Form 8038-CP.)
Return for Credit Payments to Issuers of Qualified Bonds
not cause a reissuance of the tax credit
option to elect to issue qualified zone
Section references are to the Internal Revenue
Code unless otherwise noted.
bonds, including direct pay bonds, for
academy bonds as specified tax credit
purposes of Regulations section 1.1001-3.
bonds for bonds issued pursuant to an
Future Developments
allocation of the 2011 or later national
Under section 6 of Rev. Proc. 2018-26,
zone academy bond limitation. The ARRA,
For the latest information about
an issuer must provide an explanation and
developments related to Form 8038-CP
the HIRE Act, and the Tax Relief Act are
revised information to the IRS with the
referred to throughout these instructions
and its instructions, such as legislation
Form 8038-CP filed for the first interest
as the Acts.
enacted after they were published, go to
payment date after nonqualified use
IRS.gov/Form8038CP.
occurs, if the issuer decides to cure the
Form 8038-CP is used by issuers of
nonqualified use by taking the remedial
build America bonds, recovery zone
What's New
action under section 6 of the revenue
economic development bonds, and
The Tax Cuts and Jobs Act (P.L. 115-97)
procedure. The issuer must print or type
specified tax credit bonds who elect to
repealed the authority to issue tax credit
“Remedial Action under Section 6 of Rev.
receive a direct payment from the federal
bonds, including specified tax credit
Proc. 2018-26” across the top of the Form
government equal to a percentage of the
bonds. The repeal applies to qualified
8038-CP. The issuer must also include an
interest payments on these bonds. For
forestry conservation bonds, new clean
attachment that provides (i) an
more information, see Notices 2009-26,
renewable energy bonds, qualified energy
explanation stating that a nonqualified use
2009-16 I.R.B. 833, and 2010-35, 2010-19
conservation bonds, qualified zone
occurred and the date of the nonqualified
I.R.B. 660.
academy bonds, and qualified school
use, and (ii) a revised debt service
construction bonds issued after December
Note. Each type of specified tax credit
schedule through final maturity reflecting
bond must be reported on a separate
31, 2017. The authority to issue recovery
the exclusion of amounts allocable to the
Form 8038-CP. For qualified energy
zone economic development bonds and
nonqualified bonds beginning with the
conservation bonds and new clean
build America bonds expired on January
date of the nonqualified use.
renewable energy bonds with multiple
1, 2011. If an issuer takes action that
The revised debt service schedule
results in a reissuance, then the bonds
maturities, each maturity must be reported
must contain the information described
may no longer be qualified bonds under
on a separate Form 8038-CP.
below in the specific instructions for lines
the applicable section and the issuer may
Other tax credit bonds, including
20a and 20b.
no longer be entitled to request a payment
qualified zone academy bonds issued
using Form 8038-CP.
Reminders
pursuant to an allocation of 2011 (or later)
volume cap, qualified forestry
A direct deposit box on Form 8038-CP
Note. Only issuers of build America
conservation bonds, clean renewable
bonds and recovery zone economic
allows issuers of bonds the choice of
energy bonds, and Midwestern tax credit
development bonds issued before
having their credit payment directly
bonds are not eligible for the election by
deposited into their account. The issuer
January 1, 2011, and specified tax credit
the issuer to receive refundable credit
must enter the correct Automated Clearing
bonds issued before January 1, 2018, that
payments under section 6431(f).
House (ACH) routing and account
qualify for, and have elected to receive, a
This return is to be filed only if, as
numbers on Form 8038-CP to receive a
refundable credit under section 6431 may
of the date filed, the issuer of the
file Form 8038-CP.
direct deposit.
!
outstanding bonds for which this
CAUTION
General Instructions
The IRS issued Rev. Proc. 2018-26,
return is submitted has reasonably
2018-18 I.R.B. 546, on April 30, 2018,
concluded that the bonds meet all
Purpose of Form
which provides various remedial actions,
applicable requirements for the payment
of the requested credit.
including remedial actions for bonds
The American Recovery and
providing refundable tax credits under
Reinvestment Act of 2009 (ARRA) created
Who Must File
section 6431 payable to the issuer (“direct
build America bonds and recovery zone
pay bonds”) that allow an issuer to reduce
economic development bonds. The Hiring
Issuers of qualified build America bonds,
its claimed refundable tax credit in
Incentives to Restore Employment Act
recovery zone economic development
proportion to the amount of bonds affected
(HIRE Act) provided an option for issuers
bonds, and specified tax credit bonds
by nonqualified use. See Rev. Proc.
of new clean renewable energy bonds,
must submit this return to request credit
2018-26, available at
IRS.gov/pub/irs-irbs/
qualified energy conservation bonds,
payments payable under the Acts.
irb18-18.pdf. This revenue procedure
qualified zone academy bonds, and
What To File
provides additional remedial actions for
qualified school construction bonds to
tax credit bonds, including direct pay
elect to issue such bonds as specified tax
The payment requested on Form 8038-CP
bonds, such as redemption, defeasance,
credit bonds. The Tax Relief,
can only relate to the interest paid on a
and alternative use of disposition
Unemployment Insurance
single bond issue. If the issue has both
proceeds. A defeasance escrow
Reauthorization, and Job Creation Act of
fixed rate bonds and variable rate bonds,
established under Rev. Proc. 2018-26 will
2010 (the Tax Relief Act) discontinued the
file a separate Form 8038-CP for each
Aug 09, 2018
Cat. No. 52942P
Instructions for Form
Department of the Treasury
Internal Revenue Service
8038-CP
(Rev. September 2018)
(Use with the January 2012 revision of Form 8038-CP.)
Return for Credit Payments to Issuers of Qualified Bonds
not cause a reissuance of the tax credit
option to elect to issue qualified zone
Section references are to the Internal Revenue
Code unless otherwise noted.
bonds, including direct pay bonds, for
academy bonds as specified tax credit
purposes of Regulations section 1.1001-3.
bonds for bonds issued pursuant to an
Future Developments
allocation of the 2011 or later national
Under section 6 of Rev. Proc. 2018-26,
zone academy bond limitation. The ARRA,
For the latest information about
an issuer must provide an explanation and
developments related to Form 8038-CP
the HIRE Act, and the Tax Relief Act are
revised information to the IRS with the
referred to throughout these instructions
and its instructions, such as legislation
Form 8038-CP filed for the first interest
as the Acts.
enacted after they were published, go to
payment date after nonqualified use
IRS.gov/Form8038CP.
occurs, if the issuer decides to cure the
Form 8038-CP is used by issuers of
nonqualified use by taking the remedial
build America bonds, recovery zone
What's New
action under section 6 of the revenue
economic development bonds, and
The Tax Cuts and Jobs Act (P.L. 115-97)
procedure. The issuer must print or type
specified tax credit bonds who elect to
repealed the authority to issue tax credit
“Remedial Action under Section 6 of Rev.
receive a direct payment from the federal
bonds, including specified tax credit
Proc. 2018-26” across the top of the Form
government equal to a percentage of the
bonds. The repeal applies to qualified
8038-CP. The issuer must also include an
interest payments on these bonds. For
forestry conservation bonds, new clean
attachment that provides (i) an
more information, see Notices 2009-26,
renewable energy bonds, qualified energy
explanation stating that a nonqualified use
2009-16 I.R.B. 833, and 2010-35, 2010-19
conservation bonds, qualified zone
occurred and the date of the nonqualified
I.R.B. 660.
academy bonds, and qualified school
use, and (ii) a revised debt service
construction bonds issued after December
Note. Each type of specified tax credit
schedule through final maturity reflecting
bond must be reported on a separate
31, 2017. The authority to issue recovery
the exclusion of amounts allocable to the
Form 8038-CP. For qualified energy
zone economic development bonds and
nonqualified bonds beginning with the
conservation bonds and new clean
build America bonds expired on January
date of the nonqualified use.
renewable energy bonds with multiple
1, 2011. If an issuer takes action that
The revised debt service schedule
results in a reissuance, then the bonds
maturities, each maturity must be reported
must contain the information described
may no longer be qualified bonds under
on a separate Form 8038-CP.
below in the specific instructions for lines
the applicable section and the issuer may
Other tax credit bonds, including
20a and 20b.
no longer be entitled to request a payment
qualified zone academy bonds issued
using Form 8038-CP.
Reminders
pursuant to an allocation of 2011 (or later)
volume cap, qualified forestry
A direct deposit box on Form 8038-CP
Note. Only issuers of build America
conservation bonds, clean renewable
bonds and recovery zone economic
allows issuers of bonds the choice of
energy bonds, and Midwestern tax credit
development bonds issued before
having their credit payment directly
bonds are not eligible for the election by
deposited into their account. The issuer
January 1, 2011, and specified tax credit
the issuer to receive refundable credit
must enter the correct Automated Clearing
bonds issued before January 1, 2018, that
payments under section 6431(f).
House (ACH) routing and account
qualify for, and have elected to receive, a
This return is to be filed only if, as
numbers on Form 8038-CP to receive a
refundable credit under section 6431 may
of the date filed, the issuer of the
file Form 8038-CP.
direct deposit.
!
outstanding bonds for which this
CAUTION
General Instructions
The IRS issued Rev. Proc. 2018-26,
return is submitted has reasonably
2018-18 I.R.B. 546, on April 30, 2018,
concluded that the bonds meet all
Purpose of Form
which provides various remedial actions,
applicable requirements for the payment
of the requested credit.
including remedial actions for bonds
The American Recovery and
providing refundable tax credits under
Reinvestment Act of 2009 (ARRA) created
Who Must File
section 6431 payable to the issuer (“direct
build America bonds and recovery zone
pay bonds”) that allow an issuer to reduce
economic development bonds. The Hiring
Issuers of qualified build America bonds,
its claimed refundable tax credit in
Incentives to Restore Employment Act
recovery zone economic development
proportion to the amount of bonds affected
(HIRE Act) provided an option for issuers
bonds, and specified tax credit bonds
by nonqualified use. See Rev. Proc.
of new clean renewable energy bonds,
must submit this return to request credit
2018-26, available at
IRS.gov/pub/irs-irbs/
qualified energy conservation bonds,
payments payable under the Acts.
irb18-18.pdf. This revenue procedure
qualified zone academy bonds, and
What To File
provides additional remedial actions for
qualified school construction bonds to
tax credit bonds, including direct pay
elect to issue such bonds as specified tax
The payment requested on Form 8038-CP
bonds, such as redemption, defeasance,
credit bonds. The Tax Relief,
can only relate to the interest paid on a
and alternative use of disposition
Unemployment Insurance
single bond issue. If the issue has both
proceeds. A defeasance escrow
Reauthorization, and Job Creation Act of
fixed rate bonds and variable rate bonds,
established under Rev. Proc. 2018-26 will
2010 (the Tax Relief Act) discontinued the
file a separate Form 8038-CP for each
Aug 09, 2018
Cat. No. 52942P
type of bond. If a single bond issue
development bonds, and specified tax
listed in Part I. If the entity listed in Part I is
constitutes both build America bonds
credit bonds.
the issuer, the account information must
(Direct Pay) and recovery zone economic
be the account information of the issuer.
Where To File
development bonds, file a separate Form
The issuer must enter the correct ACH
File Form 8038-CP with the Department of
8038-CP for each type of bond.
routing and account numbers on Form
the Treasury, Internal Revenue Service
8038-CP to receive a direct deposit.
File a separate Form 8038-CP for each
Center, Ogden, UT 84201-0050.
If the amount of the credit
issue of qualified school construction
Private delivery services. Filers can
payment requested is required to
!
bonds or qualified zone academy bonds
use certain private delivery services (PDS)
be offset against other
and for each issue of qualified energy
CAUTION
designated by the IRS to meet the “timely
outstanding taxes or obligations, then the
conservation bonds and new clean
mailing as timely filing” rule for tax returns.
credit payment to be received could be
renewable energy bonds consisting of a
Go to
IRS.gov/PDS
for the current list of
less than the amount requested. For more
single maturity. File a separate Form
designated services.
information, see Notices 2009-26 and
8038-CP for each bond maturity of an
2010-35.
The PDS can tell you how to get written
issue of qualified energy conservation
proof of the mailing date.
bonds and new clean renewable energy
Specific Instructions
bonds with multiple bond maturities. If the
For the IRS mailing address to use if
information provided on the return relates
you're using PDS, go to
IRS.gov/
Part I—Information on Entity
to more than one bond issue, or in the
PDSstreetAddresses.
case of qualified energy conservation
That Is To Receive Payment of
PDS can’t deliver items to P.O.
bonds or new clean renewable energy
Credit and Communications
boxes. You must use the U.S.
!
bonds with multiple maturities relates to
Postal Service to mail any item to
more than one maturity, or if the return is
Amended return. An issuer may file an
CAUTION
an IRS P.O. box address.
not completed in full, the credit payment
amended return to change or add to the
may be delayed. In order to process the
information reported on a previously filed
Other Forms That May Be
refundable credit payment, the IRS will
return for a single issue or single maturity,
Required
correspond with either the designated
as applicable, for the same interest
contact person of the entity listed in Part I
payment date. If you are filing to correct
For rebating arbitrage (or paying a penalty
at the address listed in Part I, or the issuer
errors or change a previously filed return,
in lieu of arbitrage rebate) to the federal
or its designee listed in Part II, as
check the Amended Return box in the
government, use Form 8038-T, Arbitrage
necessary.
heading of the return.
Rebate, Yield Reduction and Penalty in
Lieu of Arbitrage Rebate. For reporting the
When To File
The amended return must provide all
issuance of all tax credit bonds, including
the information reported on the original
A Form 8038-CP filed for fixed rate bonds
specified tax credit bonds, use Form
return, in addition to the new or corrected
must be filed no later than 45 days before
8038-TC, Information Return for Tax
information. Attach an explanation of the
the relevant interest payment date. Form
Credit Bonds and Specified Tax Credit
reason for the amended return and print or
8038-CP may not, however, be submitted
Bonds. For specified tax credit bonds, the
type across the top, “Amended Return
earlier than 90 days before the relevant
Form 8038-TC associated with a Form
Explanation.”
interest payment date.
8038-CP filing must be filed at least 30
Note. Do not check the Amended Return
days prior to the submission of the first
For variable rate bonds, when the
box if you are correcting prior filings of
Form 8038-CP of the bond issue. For
issuer knows the interest payment amount
Form 8038-CP by using line 21a or 21b.
more information, see Notice 2010-35.
45 days prior to the interest payment date,
Any corrections to Part III must be
Form 8038-CP may be filed within the
Rounding to Whole Dollars
corrected by using the net adjustment
same timelines as fixed rate bonds (45
line 21a or 21b. Such corrections must
You must enter cents on the form. Do not
days before the relevant interest payment
only be submitted on a subsequent Form
round amounts to the nearest dollar (for
date but no earlier than 90 days before the
8038-CP filed to request a credit payment.
example, $1.75 must be entered as $1.75,
relevant interest payment date).
An amended return should only be filed:
not $2.00; conversely, $1.25 must be
entered as $1.25, not $1.00). Round
1. To correct information in Parts I and
For variable rate bonds when the issuer
fractional cents to the next lowest cent (for
II for Form 8038-CP; or
does not know the interest payment
example, round $1.996 down and enter as
amount 45 days prior to the interest
2. If you previously filed a final return
$1.99). The amount paid to you will be
payment date, the issuer must aggregate
and need to make subsequent corrections
based on these parameters.
all credit payments on a quarterly basis
to line 21a or 21b only, then you should
and file a Form 8038-CP for
check the Amended Return box.
Where the Requested Payment
reimbursement in arrears no later than 45
Will Be Sent
Line 1. Enter the name of the entity to
days after the last interest payment date
The credit payment on line 22 will be sent
which the requested refundable credit
within the quarterly period the
by check to the entity that is to receive
payment is to be paid. If the payment is to
reimbursement is being requested.
be made to the entity that issued the
payment listed in Part I at the address
Issuers of build America bonds,
designated in Part I, unless the issuer has
bonds, enter the name of that issuer. For
recovery zone economic development
elected to have the payment deposited
build America bonds and recovery zone
bonds, and specified tax credit bonds are
directly, in which case the payment will be
economic development bonds, the
required to submit the most recent revision
directly deposited to the routing and
issuer's name should be identical to the
of Form 8038-CP to request payment of a
account numbers listed on lines 25a and
name listed on Form 8038-B, Information
refundable credit. As of the date of
25c.
Return for Build America Bonds and
publication of these instructions, the most
Recovery Zone Economic Development
Note. If the entity listed in Part I is not the
recent revision of Form 8038-CP is the
Bonds, Part I, line 1. For specified tax
issuer, the ACH routing and account
January 2012 version. Form 8038-CP will
credit bonds, the issuer's name should be
numbers listed on lines 25a and 25c must
be processed on receipt for build America
identical to the name listed on Form
be the account information of the entity
bonds, recovery zone economic
-2-
8038-TC, Part I, line 1. If the issuer
name, EIN, and complete address of the
Note. If the issuer authorizes, on line 15,
authorized another entity (for example, a
issuer of the bond issue. For build
the IRS to call a person other than an
trustee bank) to receive the requested
America bonds and recovery zone
officer of the issuer for more information,
refundable credit payment on its behalf,
economic development bonds, the
by signing this form the issuer's authorized
enter the name of that entity.
issuer's name and EIN should be identical
representative consents to the disclosure
to the name and EIN listed on Form
of the issuer's return information to such
Note. The IRS will send payment only to
8038-B, Part I, lines 1 and 2, filed for the
person, as necessary to process this
the entity listed in Part I. By entering the
bond issue. For specified tax credit bonds,
return.
name of an entity other than the issuer, the
the issuer's name and EIN should be
issuer consents and authorizes the IRS to
Line 17a. For build America bonds and
identical to the name and EIN listed on
send the requested refundable credit
recovery zone economic development
Form 8038-TC, Part I, lines 1 and 2, filed
payment directly to the entity listed in Part
bonds, check the type of issue that was
for the bond issue.
I. The issuer further consents and
identified in Part III, Purpose of Issue, of
authorizes the IRS to communicate
Line 10. This line is for IRS use only. Do
Form 8038-B, for example, education,
directly with the entity listed in Part I and to
not make any entries in this box.
health and hospital, transportation, public
disclose its return information to that
safety, environment (including sewage
Line 12. Enter the issue date of the bond
entity, as necessary, in order to process
bonds), housing, utilities, or other (with
issue. For build America bonds and
the refundable credit payment.
description). Do not check more than one
recovery zone economic development
type of issue; if the issuance is
Line 2. Enter the employer identification
bonds, the issue date should be identical
multipurpose, check the type of issue that
number (EIN) of the entity identified in
to the issue date listed on Form 8038-B,
is the largest portion of the issue price. For
line 1. If the issuer is the entity listed in
Part I, line 7. For specified tax credit
specified tax credit bonds, do not check a
Part I, for build America bonds and
bonds, the issue date should be identical
box on line 17a.
recovery zone economic development
to the issue date listed on Form 8038-TC,
bonds, the issuer's EIN should be identical
Part I, line 7.
Line 17b. For build America bonds and
to the EIN listed on Form 8038-B, Part I,
recovery zone economic development
Line 13. Enter the name of the bond
line 2. If the issuer is the entity listed in
bonds, enter the total issue price for the
issue. If the bond issue is not named, write
Part I, for specified tax credit bonds, the
bond listed on Form 8038-B, Part III,
“None.” For build America bonds and
issuer's EIN should be identical to the EIN
line 3, filed for the bond issue. For
recovery zone economic development
listed on Form 8038-TC, Part I, line 2. An
specified tax credit bonds, also enter the
bonds, the name of the bond issue should
entity that does not have an EIN should
total issue price for the bond listed on
be identical to the name listed on Form
apply online by visiting the IRS website at
Form 8038-TC, Part III, line 1, filed for the
8038-B, Part I, line 8, filed for the bond
IRS.gov/EIN. The organization may also
bond issue.
issue. For specified tax credit bonds, the
apply for an EIN by faxing or mailing Form
name of the bond issue should be
Line 17c. Check the box that applies to
SS-4 to the IRS.
identical to the name listed on Form
the bonds of the issue for which this return
Lines 5 and 6. If the issuer is not the
8038-TC, Part I, line 8, filed for the bond
is submitted.
entity listed in Part I, enter on line 5 the
issue.
A failure to provide requested
name and title and on line 6 the phone
Line 14. Enter the Committee on Uniform
information will delay processing
!
number of the designated contact person
Securities Identification Procedures
of this return. For build America
for the entity named in Part I that is to
CAUTION
(CUSIP) number on the bond with the
bonds and recovery zone economic
receive payment of the credit (such as an
latest maturity for which a refundable
development bonds, do not leave line 12,
employee of the trustee bank) that the IRS
credit is being requested. For build
13, 14, 17a, 17b, or 17c blank. For
may call for more information. If the issuer
America bonds and recovery zone
specified tax credit bonds, do not leave
is the entity listed in Part I, enter on line 5
economic development bonds, the CUSIP
line 12, 13, 14, 17b, or 17c blank.
the name and title and on line 6 the phone
number should be identical to the CUSIP
number of the designated contact person
Part III—Payment of Credit
number listed on Form 8038-B, Part I,
(such as an officer of the issuer, the legal
line 9, filed for the bond issue. For
representative of the issuer, or the paid
Line 18. Enter the interest payment date
qualified school construction bonds and
preparer) whom the IRS may call for more
to which the requested refundable credit
qualified zone academy bonds, and for
information.
payment relates. An interest payment date
qualified energy conservation bonds and
is the date on which interest is payable by
new clean renewable energy bonds
Note. If the issuer on line 5 authorizes the
the issuer to the holders of the bonds. (For
consisting of a single maturity, the CUSIP
IRS to call a person other than an officer of
a variable rate issue, enter the last interest
number should be identical to the CUSIP
the issuer for more information, by signing
payment date applicable to the quarterly
number listed on Form 8038-TC, Part I,
this return the issuer's authorized
period to which this return relates.) For
line 9, filed for the bond issue. For
representative consents to the disclosure
certain variable rate bonds, the
qualified energy conservation bonds and
of the issuer's return information to such
remarketing date or the date the interest
new clean renewable energy bonds with
person, as necessary to process this
rate is reset may not be the same date the
multiple maturities, the CUSIP number
return.
interest is paid.
should be the CUSIP number for the
Part II—Reporting Authority
maturity reported on this form. If the bond
Line 19a. Enter the amount of interest
issue was not publicly offered and there is
payable to the holders of the bonds on the
Part II should be completed in full if the
no assigned CUSIP number, write “None.”
interest payment date. The amount
issuer authorized the IRS to pay the
entered on line 19a can only relate to the
requested refundable credit payment to
Lines 15 and 16. If the issuer is not the
interest payable on a single bond issue
another entity on its behalf (for example, a
entity listed in Part I, enter the name, title,
and the amount of interest allocable to a
trustee bank).
and phone number of the officer of the
single bond type (build America bond,
issuer or other employee whom the IRS
Lines 7 and 8. If the issuer's name is the
recovery zone economic development
may call for more information. If the issuer
same as line 1, enter “SAME” and skip
bond, or a single type of specified tax
is the entity listed in Part I, leave lines 15
lines 8, 9, 11, 15, and 16. If the issuer's
credit bond). Issuers of new clean
and 16 blank.
name is not the same as line 1, enter the
renewable energy bonds or qualified
-3-
energy conservation bonds with multiple
must equal 45% of the amount reported
and a revised debt service schedule
maturities must file a separate Form
on line 19a.
(described below), and print or type
8038-CP for each bond maturity and
“Revised Debt Service Schedule” across
For specified tax credit bonds, the
should enter the amount of interest
the top of the Form 8038-CP. For variable
amount of the refundable credit payment
payable on the maturity for the refundable
rate bonds, no explanation is required
allowed under section 6431(f) for qualified
credit being requested. (See What To File,
unless there is a change in previously
zone academy bonds and qualified school
earlier.)
reported interest payments or principal
construction bonds is the lesser of 100%
amortization. If the changes result from the
of the amount of interest payable under
Note. Credit payments are not allowed for
issuer’s nonqualified use of bond
the bond on such interest payment date or
preissuance accrued interest.
proceeds and taking a remedial action
100% of the amount of interest which
under section 6 of Rev. Proc. 2018-26, the
would have been payable under such
Line 19b. For specified tax credit bonds
issuer must provide an explanation and
bond on such date if such interest were
only, enter the applicable credit rate. The
revised information to the IRS with the
determined at the applicable tax credit
applicable credit rate is the daily tax credit
Form 8038-CP filed for the first interest
bond rate determined under section
bond rate set by the Secretary under
payment date after the nonqualified use of
54A(b)(3). For new clean renewable
section 54A(b)(3), determined as of the
the bond proceeds occurs. The issuer
energy bonds and qualified energy
first day on which there is a binding written
must print or type “Remedial Action under
conservation bonds, the amount of the
contract for the sale or exchange of the
Section 6 of Rev. Proc. 2018-26” across
refundable credit payment allowed under
bond. Carry the percent out to two decimal
the top of the Form 8038-CP. The issuer
section 6431(f) is the lesser of 100% of the
places, and do not round (for example, for
must also include an attachment that
amount of interest payable under the bond
credit rate 10.746%, write 10.74%). The
provides (i) an explanation stating that a
on such interest payment date or 70% of
tax credit bond rate is published by the
nonqualified use occurred and the date of
the amount of interest which would have
Bureau of Fiscal Service on its Internet
the nonqualified use, and (ii) a revised
been payable under such bond on such
site for State and Local Government
debt service schedule (described below)
date if such interest were determined at
Series Securities at TreasuryDirect.gov.
reflecting the exclusion of amounts
the applicable tax credit bond rate
See Notice 2009-15, which is on page 449
allocable to the nonqualified bonds
determined under section 54A(b)(3).
of Internal Revenue Bulletin 2009-6 at
beginning with the date of the nonqualified
IRS.gov/pub/irs-irbs/irb09-06.pdf.
For specified tax credit bonds, enter
use.
the amount of the requested credit
Line 19c. For specified tax credit bonds
The revised debt service schedule
payment as follows.
with a single maturity only, enter the
must contain the information described
Line 20c—New clean renewable
amount of interest that would be payable
below for the bond issue.
energy bonds, enter the lesser of 100% of
to the holders of the bonds on the interest
line 19a or 70% of line 19c.
1. For fixed rate bonds, attach a
payment date if figured using the
Line 20d—Qualified energy
revised debt service schedule through
applicable credit rate in the box on
conservation bonds, enter the lesser of
final maturity that provides a list of each
line 19b.
100% of line 19a or 70% of line 19c.
interest payment date, the total interest
Issuers of qualified school construction
Line 20e—For qualified zone academy
payable on such date, the total principal
bonds or qualified zone academy bonds
bonds consisting of a single maturity,
amount of qualified bonds expected to be
with multiple maturities should enter the
enter 100% of the lesser of line 19a or
outstanding on such date, the interest
sum of all of the amounts each of which
19c; and for qualified zone academy
rate(s), the refundable credit payment
was determined for each bond to be the
bonds consisting of multiple maturities,
expected to be requested from the IRS as
lesser of interest payable under the bond
enter 100% of line 19c.
allowed under section 6431(f) on such
on the interest payment date or interest
date, and the earliest date that the
that would be payable under the bond on
Note. Issuers issuing qualified zone
qualified bonds can be called.
such date if such interest were determined
academy bonds pursuant to an allocation
2. For variable rate bonds, attach a
at the applicable credit rate for such bond.
of 2011 or later national zone academy
revised debt service schedule through
This sum amount is the maximum
bond limitation (volume cap) cannot make
final maturity that provides a list of each
allowable credit for all qualified school
a valid election to issue such bonds as
interest payment date, the total principal
construction bonds or qualified zone
specified tax credit bonds and may not
amount of qualified bonds expected to be
academy bonds of the issue for the
claim a refundable credit under section
outstanding on such date, and a
interest payment date.
6431 by filing Form 8038-CP.
description of how interest on the qualified
Issuers of qualified energy
Line 20f—For qualified school
bonds is figured. However, if the issuer
conservation bonds and new clean
construction bonds consisting of a single
knows the interest amount for a certain
renewable energy bonds with multiple
maturity, enter 100% of the lesser of
period, for that period the issuer should
maturities should enter the amount of
line 19a or 19c; and for qualified school
provide the refundable credit payment
interest payable to the holders of the
construction bonds consisting of multiple
expected to be requested from the IRS as
bonds on the interest payment date
maturities, enter 100% of line 19c.
allowed under section 6431(f).
figured using the applicable credit rate in
Note. You may not have more than one
the box on line 19b for the maturity for
Lines 21a and 21b. Lines 21a and 21b
entry on line 20a, 20b, 20c, 20d, 20e, or
which a refundable credit is being
are available to correct prior mistakes to
20f.
requested on this Form 8038-CP under
credit payments related to prior filings of
line 19a.
If the amount shown on line 20a, 20b,
Form 8038-CP for the respective issue.
20c, 20d, 20e, or 20f does not equal the
If a prior credit payment amount was
Lines 20a and 20b. For build America
amount of the credit payment shown on
received that was less than the correct
bonds and recovery zone economic
the debt service schedule attached to the
amount, then enter the amount on line 21a
development bonds, enter the amount of
information return for the bonds filed
that relates to the corresponding increase
the requested credit payment relating to
separately with the IRS (Form 8038-TC or
to this payment request.
the interest paid on the interest payment
Form 8038-B), or the latest revised debt
If a prior credit payment amount was
date. The amount reported on line 20a
service schedule subsequently filed with
received that exceeded the correct
must equal 35% of the amount reported
the IRS, you must attach an explanation
amount for that payment, then enter the
on line 19a, or the amount on line 20b
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amount on line 21b that relates to the
you will receive an explanation in the mail
Generally, anyone who is paid to
corresponding decrease to this payment
about 2 weeks after your credit payment is
prepare a return must sign it and fill in the
request.
deposited.
other blanks in the Paid Preparer Use Only
If there are both increase and decrease
area of the return. A paid preparer cannot
Line 25a. The routing number must be
adjustments related to multiple prior
use a social security number in the
nine digits. The first two digits must be 01
payments, then net the amounts and
preparer tax identification number (PTIN)
through 12 or 21 through 32. Otherwise,
include the corresponding amount in
box. The paid preparer must use a PTIN. If
the direct deposit will be rejected and a
either line 21a or 21b, as appropriate.
the paid preparer is self-employed, the
check will be sent instead. If the entity
preparer should enter his or her address in
If any amount is entered on either
listed in Part I is not the issuer (such as a
the box.
line 21a or 21b, attach an explanation and
trustee bank), ask that entity for the
print or type across the top, “Explanation
correct routing number. (See Where the
The paid preparer must:
for Adjustment - Line 21a/21b,” explaining
Requested Payment Will Be Sent, earlier.)
Sign the return in the space provided
how the error occurred and what steps
Line 25b. Check the appropriate box for
for the preparer's signature, and
were taken to prevent similar errors from
the type of account. Do not check more
Give a copy of the return to the issuer.
recurring. If an explanation is not attached,
than one box. If unknown, leave blank.
credit payment may be delayed.
Paperwork Reduction Act Notice. We
Line 25c. The account number can be up
Line 22. Enter the amount of the credit
ask for the information on this form to
to 17 characters (both numbers and
payment to be received. Combine the
determine your entitlement to the credits
letters). Include hyphens but omit spaces
amount in line 20a, 20b, 20c, 20d, 20e, or
requested on the form. We need this
and special symbols. Enter the number
20f with the amount in either line 21a or
information to determine the proper
from left to right and leave any unused
21b, as applicable.
amount of the credit.
boxes blank.
Note. If an amount of the credit payment
You are not required to provide the
requested is required to be offset against
Signature and Consent
information requested on a form that is
other outstanding taxes or obligations,
subject to the Paperwork Reduction Act
An officer of the issuer with authority to
then the credit payment to be received
unless the form displays a valid OMB
bind the issuer must sign Form 8038-CP
could be less than the amount on line 22.
control number. Books or records relating
and any applicable certification. If the
For more information, see Notices
to a form or its instructions must be
entity listed in Part I is not the issuer, the
2009-26 and 2010-35.
retained as long as their contents may
authority of the person signing this return
become material in the administration of
Line 23. Check “Yes” or “No.” Check
must include the authority to bind the
any Internal Revenue law. Generally, tax
“Yes” if the requested payment is the final
issuer, the authority to request that the IRS
returns and return information are
payment of interest for the bond issue.
send the refundable credit payment to the
confidential, as required by section 6103.
The final payment of interest for either the
entity identified in Part I, and the authority
single maturity or the bond issue, as
to consent to the disclosure of return
The time needed to complete and file
applicable, relating to this request, is the
information necessary to process the
this form will vary depending on individual
last payment of interest prior to, or in
refundable credit payment to the
circumstances. The estimated average
conjunction with, the maturity or
designated contact person(s) listed in
time is:
redemption of the issue. If a box is not
Parts I and II on Form 8038-CP, as
checked, credit payments may be
applicable. Also print the name and title of
Recordkeeping
7 hr., 53 min.
. . . . . . . .
delayed.
the person signing Form 8038-CP.
Learning about the law or
Line 24. If the issuer completed Part I
the form
55 min.
. . . . . . . . . . . . .
Note. If the issuer designates on line 5 of
authorizing another entity (for example, a
Preparing, copying,
Part I or line 15 of Part II a person other
trustee bank) to receive the requested
assembling, and sending
than an officer of the issuer as a contact
refundable credit payment on its behalf,
the form to the IRS
3 hr., 29 min.
. . . . .
person for the IRS to call for more
check this box.
information, by signing this return the
issuer's authorized representative
Line 25. Complete lines 25a through 25c
if you want the amount shown on line 22
consents to the disclosure of the issuer's
If you have comments concerning the
return information to such person, as
directly deposited into your checking or
accuracy of these time estimates or
necessary to process the refundable
savings account. Otherwise, we will send
suggestions for making this form simpler,
credit payment.
a check to the entity listed in Part I.
we would be happy to hear from you. You
can send us comments through
IRS.gov/
The IRS is not responsible for a
Paid Preparer
FormComments.
lost credit payment if you enter the
!
wrong account information. Check
If an authorized officer of the issuer filled in
Or you can write to:
CAUTION
with your financial institution to get the
this return, the paid preparer block should
correct ACH routing and account numbers
remain blank. Anyone who prepares the
Internal Revenue Service
and to make sure your direct deposit will
return but does not charge the issuer
Tax Forms and Publications
be accepted. Other wire instructions or
should not sign the return. Certain others
1111 Constitution Ave. NW, IR-6526
routing or account numbers other than
who prepare the return should not sign.
Washington, DC 20224
ACH routing or account numbers are not
For example, a regular, full-time employee
acceptable substitutes for ACH routing
of the organization, such as a clerk,
Do not send the form to this address.
and account numbers on Form 8038-CP.
secretary, etc., should not sign.
Instead, see Where To File, earlier.
If the direct deposit to your account is
different from the amount you expected,
-5-

Download Instructions for IRS Form 8038-cp - Return for Credit Payments to Issuers of Qualified Bonds

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