Information Return For Tax-Exempt Private Activity Bond Issues (Page 2 of 4) in pdf

Qualified veterans’ mortgage bond. This

Restrictions apply to the use of qualified

(1-800-829-3676). You may receive an EIN

is part of an issue:

501(c)(3) bonds (both hospital and

by telephone by following the instructions for

nonhospital) to provide residential rental

Form SS-4.

1. Of which 95% or more of the net

housing. See section 145(d).

proceeds are to be used to provide

Line 4. After the preprinted 1, enter two

residences for veterans,

Issue price. The issue price of obligations

self-designated digits. If filing multiple Forms

2. For which the payment of the

is generally determined under Regulations

8038 for separate bond issues during the

principal and interest is secured by the

section 1.148-1(b). Thus, when issued for

calendar year, number reports consecutively

general obligation of a state,

cash, the issue price is the price at which a

in the order of issue date (for example, 134,

3. That meets the requirements of

substantial amount of the obligations are

135, etc.). If the return is amending a

subsections (c), (g), (i)(1), and (l) of section

sold to the public. To determine the issue

previously filed Form 8038, use the same

143, and

price of an obligation issued for property,

report number that was used on the original

4. That does not meet the private

see sections 1273 and 1274 and the related

filing.

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

regulations.

Line 6. The date of issue is generally the

Note: The issue price does not include

date on which the issuer physically

Qualified small issue bond. This is part of

interest from the date the bonds are dated to

exchanges the bonds for the underwriter’s

an issue not exceeding $1 million of which

the date of issue.

(or other purchaser’s) funds.

95% or more of the net proceeds are to be

Issue. Generally, bonds are treated as part

Line 7. If there is no name of the issue,

used to finance (a) land, (b) depreciable

of the same issue if they are issued by the

please provide other identification of the

property, or (c) a redemption of a prior issue

same issuer, on the same date, and in a

issue.

of (a) or (b). See section 144(a). The $1

single transaction, or series of related

million limit can be increased to $10 million if

Line 8. Enter the CUSIP (Committee on

transactions.

an election is made to take certain capital

Uniform Securities Identification

expenditures into account. See Regulations

Arbitrage rebate. Generally, interest on a

Procedures) number of the bond with the

section 1.103-10(b)(2)(vi).

state or local bond is not tax exempt unless

latest maturity. If the issue does not have a

the issuer of the bond rebates to the United

CUSIP number, write “None.”

Qualified student loan bond. This is part

States arbitrage profits earned from

of an issue of which:

Part II—Type of Issue

investing proceeds of the bond in higher

1. 90% or more of the net proceeds are

yielding nonpurpose investments. See

Caution: Elections referred to in Part II are

to be used to make or finance student loans

section 148(f).

made on the original bond documents, not

under a program of general application to

Construction issue. This is an issue of

on this form.

which the Higher Education Act of 1965

tax-exempt bonds that meets both of the

applies (see section 144(b)(1)(A) for

You must identify the type of bonds

following conditions:

additional requirements), or

issued by checking the appropriate box(es)

1. At least 75% of the available

2. 95% or more of the net proceeds are

and entering the corresponding issue price

construction proceeds are to be used for

to be used to make or finance student loans

(see Issue price under Definitions).

construction expenditures with respect to

under a program of general application

Line 11f. After entering the issue price,

property to be owned by a governmental

approved by the state (see section

check the appropriate box for the

unit or a 501(c)(3) organization, and

144(b)(1)(B) for additional requirements).

percentage test elected by the issuer at the

2. All the bonds that are part of the issue

time of issuance of the bonds. Then, check

Qualified redevelopment bond. This is

are qualified 501(c)(3) bonds, bonds that are

the appropriate box to show whether an

generally part of an issue of which 95% or

not private activity bonds, or private activity

election was made for deep rent skewing.

more of the net proceeds are to be used to

bonds issued to finance property to be

See Rev. Rul. 94-57, 1994-2 C.B. 5, for

finance certain specified real property

owned by a governmental unit or a 501(c)(3)

guidance on computing the income limits

acquisition and redevelopment in blighted

organization.

applicable to these bonds.

areas. See section 144(c) for other

In lieu of rebating any arbitrage that may

Line 11h. Bonds issued to finance certain

requirements.

be owed to the United States, the issuer of a

facilities may also qualify as exempt facility

Qualified 501(c)(3) bond. This is any

construction issue may make an irrevocable

bonds if they were (a) permitted as exempt

private activity bond that meets the following

election to pay a penalty. The penalty is

facility bonds under prior law and (b) issued

conditions:

equal to 1

% of the amount of construction

under one of the transitional rules of the Tax

1. All property financed by the net

proceeds that do not meet certain spending

Reform Act of 1986 (the 1986 Act).

proceeds of the bond issue is to be owned

requirements. See section 148(f)(4)(C) and

These facilities

As described in

by a 501(c)(3) organization or a

the Instructions for Form 8038-T.

include...

former section...

governmental unit, and

2. The bond would not be a private

activity bond if (a) section 501(c)(3)

A sports facility

103(b)(4)(B)

Specific Instructions

organizations were treated as governmental

units with respect to their activities that do

A convention or trade

Part I—Reporting Authority

not constitute unrelated trades or

show facility

103(b)(4)(C)

businesses (determined by applying section

Amended return. An issuer may file an

513), and (b) the private activity bond

amended return to change or add to the

A parking facility

103(b)(4)(D)

definition was applied using a 5% threshold

information reported on a previously filed

(instead of 10%) for the private use,

return for the same date of issue. If you are

A pollution control facility

103(b)(4)(F)

security, and/or payment tests, and the

filing to correct errors or change a previously

activities that constitute unrelated trades or

filed return, check the “Amended Return”

A hydroelectric facility

103(b)(4)(H)

businesses are aggregated with any other

box in the heading of the forms.

private use, security, or payment.

The amended return must provide all the

An industrial park

103(b)(5)

information reported on the original return, in

A qualified 501(c)(3) bond includes a:

addition to the new or corrected information.

•

Qualified hospital bond that is part of an

If one of the above applies, indicate the

Attach an explanation of the reason for the

issue of which 95% or more of the net

facility type and then give the specific

amended return.

proceeds are to be used for a hospital.

provision of the 1986 Act pertaining to the

•

Line 1. The issuer’s name is the name of

Qualified nonhospital bond that is other

facility on line 11h.

the entity issuing the bonds, not the name of

than a qualified hospital bond. In general, an

Line 11i. Enter the issue price if the bonds

the entity receiving the benefit of the

organization cannot have more than $150

are part of any issue 95% or more of the net

financing.

million of qualified 501(c)(3) nonhospital

proceeds of which are to be used to provide

bonds; see section 145(b). However, the

Line 2. An issuer that does not have an

any enterprise zone facility in an

limit does not apply to bonds issued after

employer identification number (EIN) should

empowerment zone or enterprise

August 5, 1997, if 95% or more of the net

apply for one on Form SS-4, Application for

community. See section 1394.

proceeds of the issue are to be used solely

Employer Identification Number. You can

for capital expenditures incurred after that

get this form on the IRS Website at

Note: Check the box on line 11j for

date.

or by calling 1-800-TAX-FORM

empowerment zone facility bonds or line 11k

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Information Return For Tax-Exempt Private Activity Bond Issues Page 2

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