Information Return For Tax-Exempt Private Activity Bond Issues printable pdf download

Department of the Treasury

Instructions for Form 8038

Internal Revenue Service

(Rev. September 2007)

Information Return for

Tax-Exempt Private Activity Bond Issues

explaining why Form 8038 was not filed on

persons other than governmental units and

Section references are to the Internal

time. Also indicate whether the bond issue

(b) exceeds the lesser of 5% of the

Revenue Code unless otherwise noted.

in question is under examination by the IRS.

proceeds or $5 million.

What’s New

Do not submit copies of the trust indenture

Exempt facility bond. This is part of an

or other bond documents. See Where To

issue of which 95% or more of the net

Recent legislation added section 142(a)(14),

File next.

proceeds are to be used to finance an

qualified green building and sustainable

exempt facility listed in section 142(a)(1)

design projects, and section 142(a)(15),

Where To File

through (15). Exempt facility bonds include

qualified highway or surface freight transfer

File Form 8038, and any attachments, with

qualified enterprise zone facility bonds for

facilities, to the list of exempt facility bonds,

Department of the Treasury, Internal

use in empowerment zones, enterprise

effective for obligations issued after

Revenue Service Center, Ogden, UT 84201.

communities, Gulf Opportunity Zone Bonds,

December 31, 2004, and August 9, 2005,

and New York Liberty Bonds.

respectively. See Qualified green building

Signature

and sustainable design projects and

Qualified green building and sustainable

An authorized representative of the issuer

Qualified highway or surface freight transfer

design projects. Part of an issue of which

must sign Form 8038 and any applicable

facilities below.

95% or more of the net proceeds are used

certification. Also print the name and title of

to finance a project which promotes energy

Recent legislation added information

the person signing Form 8038.

efficiency, renewable energy, and

filing requirements for the following tax

sustainable design features and is approved

credit bonds: qualified zone academy bonds

Other Forms That May Be

by the IRS (in consultation with the

under section 1397E, and clean renewable

Required

Environmental Protection Agency). The

energy bonds under section 54. See the

project must also meet certain requirements

For bonds other than private activity bonds,

instructions for line 20(c) on page 3.

relating to: United States Green Building

use Form 8038-G, Information Return for

Council’s LEED certification; brownfield

Tax-Exempt Governmental Obligations, or

redevelopment; financial support from state

General Instructions

Form 8038-GC, Information Return for Small

or local government; and minimum size

Tax-Exempt Governmental Bond Issues,

requirements of the project. See section

Leases, and Installment Sales, to comply

Purpose of Form

142(l) for more information about these and

with these requirements.

other requirements.

Form 8038 is used by the issuers of

Bonds described in section 1312(c)(2) of

tax-exempt private activity bonds to provide

Qualified highway or surface freight

the Tax Reform Act of 1986 to which the

the IRS with the information required by

transfer facilities. Part of an issue of

transitional rules in section 1312 or 1313

section 149 and to monitor the requirements

which 95% or more of the net proceeds are

apply are not private activity bonds for

of sections 141 through 150.

used to finance a qualified highway or

purposes of information reporting. Report

surface freight transfer facility within the

them on Form 8038-G or Form 8038-GC.

Who Must File

5-year period beginning on the date of the

For rebating arbitrage or paying a penalty

Issuers must file a separate Form 8038 for

issuance.

in lieu of arbitrage rebate to the Federal

each issue of the following tax-exempt

Qualified highway or surface freight

Government, use Form 8038-T, Arbitrage

private activity bonds issued after 1986:

transfer facilities is defined as any surface

•

Rebate, Yield Reduction and Penalty in Lieu

Exempt facility bonds

transportation project which receives federal

•

of Arbitrage Rebate.

Qualified mortgage bonds

assistance, any project for an international

•

Qualified veterans’ mortgage bonds

bridge or tunnel for which an international

Rounding Off to Whole Dollars

•

Qualified small issue bonds

entity authorized under federal or state law

•

You may show the money items on this

Qualified student loan bonds

is responsible and which receives federal

•

return as whole-dollar amounts. To do so,

Qualified redevelopment bonds

assistance, or any facility for the transfer of

•

drop any amount less than 50 cents and

Qualified hospital bonds

freight from truck to rail or rail to truck

•

increase any amount from 50 to 99 cents to

Qualified 501(c)(3) bonds

(including any temporary storage facilities

•

the next higher dollar.

Nongovernmental output property bonds,

directly related to such transfers) which

and

receives federal assistance. See section

Definitions

•

All other tax-exempt private activity bonds

142(m) for more information about these

Tax-exempt bond. This is any obligation

and other requirements.

Issuers must file a separate Form 8038

on which the interest is excluded from gross

for each issue of qualified zone academy

Qualified mortgage bond. This is part of

income under section 103.

bonds and clean renewable energy bonds

an issue:

issued after 2006.

Private activity bond. This includes an

1. Of which all proceeds (except

obligation issued as part of an issue in

issuance costs and reasonably required

When To File

which:

reserves) are to be used to finance

•

File Form 8038 by the 15th day of the 2nd

More than 10% of the proceeds are to be

owner-occupied residences,

calendar month after the close of the

used for any private business use, and

2. That meets the requirements of

•

More than 10% of the payment of

calendar quarter in which the bond was

subsections (c) through (i) and (m)(7) of

principal or interest of the issue is either (a)

issued. Form 8038 may not be filed before

section 143,

the issue date and must be completed

secured by an interest in property to be

3. That does not meet the private

based on the facts as of the issue date.

used for a private business use (or

business tests of sections 141(b)(1) and (2),

payments for such property), or (b) to be

Late filing. An issuer may be granted an

and

derived from payments for property (or

extension of time to file Form 8038 under

4. For which repayments of principal on

borrowed money) used for a private

Section 3 of Rev. Proc. 2002-48, 2002-37

financing provided by the issue (that are

business use.

I.R.B. 531, if it is determined that the failure

received more than 10 years after the date

to file timely is not due to willful neglect.

It also includes a bond, the proceeds of

of issuance) are used to redeem bonds that

Type or print at the top of the form, “Request

which (a) are to be used (directly or

are part of the issue. Amounts of less than

for Relief under Section 3 of Rev. Proc.

indirectly) to make or finance loans (other

$250,000 need not be used to redeem

2002-48.” Attach to the Form 8038 a letter

than loans described in section 141(c)(2)) to

bonds under this requirement.

Cat. No. 49974V

Information Return For Tax-Exempt Private Activity Bond Issues

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